Record low interest rates and a rise in mortgage applications have created an increase in mortgage volume which many companies are working hard to manage. So how does this affect real estate? Appraisal turn times is one area in which this question is relevant.
Appraisers in particular are working to keep up with refinance and purchase mortgage volume, resulting in increased demand for appraisal reports during critical junctures in the loan process, namely underwriting, which is the stage during which the appraisal is need for complete loan file review.
According to a HousingWire survey of lenders, some were quoted two to three weeks, while others initially quoted 10 days, finally received their report nearly 4 weeks later. This same survey revealed some appraisers were delayed in getting out to a property in less than four weeks.
The main issue noted across the board is appraiser attrition, which has only been fueled by the pandemic. With a low attrition level and spike in demand, appraisal companies must hire support to meet current volume.
There is good news. Property inspection waivers (PIW) through automated underwriting systems and consumer friendly, online document exchanges have helped to speed up the process while keeping employees and families safe amid COVID-19 concerns. If you are a homebuyer, ask your real estate agent or lender if a PIW is an option (ask your lender if you are refinancing).
Another way to ease homebuyers is by working with experts in the mortgage industry who share your vision of customer service. Real estate agents who work closely with their clients’ lender have a better opportunity to help homebuyers overlook the higher turn times through regular communication and transparency.
That is what you can expect when working with one of our agents here at Arizona Home Group.