Why You Should Get Your Home Appraised

Often times I am asked, “Do I need an appraisal when buying a house in San Jose, CA? The answer is yes, and it is for your benefit to make sure that the home value is actually what you and the seller agree upon. The problem lies in the HVCC (Home Valuation Code of Conduct) that appraisers are forced to work with.

More than ever, and appraisal can kill the loan process if not done by a expert appraiser who is familiar with the area that you are buying. Another issue that you want to be familiar with is how the bank underwriter will look at your loan file. Now more than ever, underwriting guidelines have become stricter. It doesn’t mean that you won’t get your loan approved quickly, it just means that you should be prepared to help connect the dots for the underwriter. The more you can tell your story and be able to support your submitted documentation with letters of explanation so that the underwriter feels secure in approving your loan, the better off you will be.

In this episode of Loan Friction (A Pulp Fiction parody), watch as Captain Koons explains how the world of getting an appraisal in San Jose , Santa Clara, Los Gatos and the surrounding areas has changed dramatically. While he pokes fun at the situation, it’s not uncommon to run into some form of turbulence because once the appraisal has been ordered by your mortgage broker, it’s completely out of his hands. Your mortgage broker is not allowed by law to communicate directly with the appraiser, or influence the outcome of the appraisal. In fact, oftentimes the mortgage broker will not even know when the appointment for the appraisal is even set. So as you can see, a lot is riding on having a really good appraiser working on the appraisal.

Rich Iacovetta is the founder and president of RMI Lending in Santa Clara, CA.  For more information, or to schedule an appointment, contact Rich at 408-249-1919 or toll free at 888-899-4537.  You can also drop him an email at: rich@RMILending.com.