For the loan to value number on any given rental property is the appraisal left completely up to the bank giving the loan? Or can one go out get a number of appraisals and pick the highest one?
Full Version: Loan To Value
The bank or lender will usually designate an appraiser or group of appraisers that can be chosen from. As a borrower, you will have no control over the appraisal process. You will not be allowed to choose the appriser. This ensures that there is no undue influence from the borrower to inflate a valuation.
With every lender that I have worked with, a list of “approved” appraisers has been kept. Those appraisers have gone through a selection process that can be as detailed as someone adding them to the list on a whim to meeting specific requirements and submission of licenses and insurance. {Some lenders will not do business with a commercial appraiser unless they hold an MAI designation}
The appraisal process normally includes requests for quotes from at least three different appraisers, and a subsequent engagement. Bank lenders are more regulated and are required to keep the whole process within a department that is not in production. This means that a loan officer can not engage an appraiser on his own, and the process is done by the credit department. The reason behind this “firewall” is to avoid undue influence from those who will benefit the most from a loan.
The appraisal process normally includes requests for quotes from at least three different appraisers, and a subsequent engagement. Bank lenders are more regulated and are required to keep the whole process within a department that is not in production. This means that a loan officer can not engage an appraiser on his own, and the process is done by the credit department. The reason behind this “firewall” is to avoid undue influence from those who will benefit the most from a loan.
I just went through an appraisal episode. 
The issue that I have with the process is.....
The Appraisers in California to get any work are certified. They pay a lot of money for their licenses, so therefore they feel that they can command high fees for their services. And they want their money "RIGHT NOW"
$360min. x 3 to 4 a day=s Boo Coo Dollars (RESIDENTIAL)
This to me causes an abuse. They have no allegience(rude) to the person that MUST give them money the borrower. The borrower can not obtain access to the appraisal until after the lender see's it and then you can request it, in order to contest it. I think if the lender absolutely needs this information for them, then they should pay for it in all cases!
If the Lender does a "in house" appraisal. That person is paid by them! And they are there to protect the Lenders interest solely.
Either way, if the Lending source does not like the appraisal that "YOU" the borrower has paid for, you're out of hundreds of dollars or a lower loan amount, at the whem of a lender. This is after they have contributed to the dropping of your FICO scores, put you through obtaining papermill hell. And have lied about the time it will actually take!
I've had appraisers that can't even measure right. Add incorrect information. Or has eliminated a legal structure all together!
Lenders have a list of approve Appraisers. This list can bring Appraisers out of their area of expertise. Say 150 miles! They feel that they can pull the comparables homes sold off the "real estate MLS" sold list and that's that.
They will pull "Comps" from savage ridden low line areas and not know or care what harm it will do to a borrowers loan.
And nowadays all they have to do is put the numbers into a computer, take louzy pictures, give their impression and email it to the lender!!!!
Fortunately after 2 months after being promised a 7 to 10 day close. They agreed to refund me a portion of the appraisal. But I had already spoken to my bank about being reimbursed.
The issue that I have with the process is.....
The Appraisers in California to get any work are certified. They pay a lot of money for their licenses, so therefore they feel that they can command high fees for their services. And they want their money "RIGHT NOW"
$360min. x 3 to 4 a day=s Boo Coo Dollars (RESIDENTIAL)
This to me causes an abuse. They have no allegience(rude) to the person that MUST give them money the borrower. The borrower can not obtain access to the appraisal until after the lender see's it and then you can request it, in order to contest it. I think if the lender absolutely needs this information for them, then they should pay for it in all cases!
If the Lender does a "in house" appraisal. That person is paid by them! And they are there to protect the Lenders interest solely.
Either way, if the Lending source does not like the appraisal that "YOU" the borrower has paid for, you're out of hundreds of dollars or a lower loan amount, at the whem of a lender. This is after they have contributed to the dropping of your FICO scores, put you through obtaining papermill hell. And have lied about the time it will actually take!
I've had appraisers that can't even measure right. Add incorrect information. Or has eliminated a legal structure all together!
Lenders have a list of approve Appraisers. This list can bring Appraisers out of their area of expertise. Say 150 miles! They feel that they can pull the comparables homes sold off the "real estate MLS" sold list and that's that.
They will pull "Comps" from savage ridden low line areas and not know or care what harm it will do to a borrowers loan.
And nowadays all they have to do is put the numbers into a computer, take louzy pictures, give their impression and email it to the lender!!!!
Fortunately after 2 months after being promised a 7 to 10 day close. They agreed to refund me a portion of the appraisal. But I had already spoken to my bank about being reimbursed.
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