{"id":5790,"date":"2021-11-03T15:07:06","date_gmt":"2021-11-03T20:07:06","guid":{"rendered":"https:\/\/nwfl4sale.com\/how-can-desktop-appraisals-make-the-mortgage-process-easier\/"},"modified":"2021-11-03T15:07:06","modified_gmt":"2021-11-03T20:07:06","slug":"how-can-desktop-appraisals-make-the-mortgage-process-easier","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/how-can-desktop-appraisals-make-the-mortgage-process-easier\/","title":{"rendered":"How Can Desktop Appraisals Make the Mortgage Process Easier?"},"content":{"rendered":"
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Desktop appraisals \u2013 a temporary pandemic policy now made permanent \u2013 is less than a full on-site appraisal yet more than just software used for quick online estimates.<\/span><\/span><\/p>\n<\/div>\n WASHINGTON \u2013 The Federal Housing Finance Agency (FHFA) Acting Director Sandra Thompson announced at the Mortgage Bankers Association (MBA) conference in San Diego that it will allow lenders to use desktop appraisals for conventional loans. These alternative valuation products will improve the homebuying process for many borrowers.<\/span><\/span><\/p>\n During the COVID-19 pandemic, the FHFA began allowing more flexibilities, such as desktop appraisals, which means an appraiser can perform the appraisal valuation from their desktop without a physical inspection of the property. But what began as a temporary alternative during stay-at-home orders is now a permanent option.<\/span><\/span><\/p>\n \u201cWhen it comes to \u2018alternative appraisal methods,\u2019 the spectrum of products really varies by the level of expertise of the person involved in the valuation, as well as the level of scrutiny in the inspection\/analysis process,\u201d said Brian Zitin, CEO of Reggora, a tech company providing services to lenders and appraisers. \u201cOn one end of the spectrum is an AVM, or automated valuation model, where no human is involved and there is no inspection of the property. On the other end of the spectrum is a full appraisal which requires a licensed appraiser to do a complete onsite inspection and full report.<\/span><\/span><\/p>\n \u201cA desktop appraisal is somewhere in the middle where, although there is no onsite inspection being done, there is a licensed appraiser doing the actual analysis of a valuation,\u201d Zitin said. \u201cThis makes a desktop appraisal a more robust solution compared to AVM, as it involves human intelligence to manage additional complexities.\u201d<\/span><\/span><\/p>\n Desktop appraisals are changing the homebuying and refinance process as technology infiltrates the real estate industry. And this latest update provides several benefits to homebuyers and homeowners looking to refinance their homes.<\/span><\/span><\/p>\n It takes less time to close<\/strong> Desktop appraisals save money<\/strong> Technology companies and lenders are optimistic about the new rule allowing desktop appraisals, saying it is a \u201cpositive development that should hopefully continue to lead to more transformational modernization of the appraisal process,\u201d Zitin said.<\/span><\/span><\/p>\n However, some appraisers are not as excited about the change, fearing the increase of technology will eliminate the need for a human appraiser and increase the risk in the housing market.<\/span><\/span><\/p>\nHow do desktop appraisals help homeowners & homebuyers?<\/span><\/span><\/h3>\n
\nCurrently, closing a mortgage typically takes between 30 to 45 days as lenders go through the process to give homebuyers or homeowners the new loan. Mortgage experts say many closing delays stem from appraisals. However, regulatory changes and technology improvements could reduce the time it takes to close a home loan.<\/span><\/span><\/p>\n
\nThe current average appraisal can cost anywhere between $200 and $600. This depends on the size of the home, the type of home, location, property condition and how much time is required to appraise it. Since desktop appraisals eliminate the need to visit the site and reduces the work needed from the appraiser, it also decreases cost to consumers, Zitin said.<\/span><\/span><\/p>\nAppraisers cautious about new FHFA rule<\/span><\/span><\/h3>\n