Should I Use the Appraiser My Mortgage Broker Recommends?
When you’re buying a home or refinancing your mortgage, getting an appraisal is a key step in the process. Your mortgage lender or broker may suggest an appraiser for you, but should you use their recommendation? While there can be benefits to going with their suggestion, there are also some potential concerns to consider.
Understanding the Role of an Appraiser
An appraiser provides an independent, professional assessment of a property’s value. Lenders use this valuation to determine how much they are willing to loan on a property. Because of regulations designed to prevent conflicts of interest, lenders themselves typically do not choose the appraiser directly. Instead, appraisers are often assigned through an Appraisal Management Company (AMC) or chosen from a panel of approved professionals.
The Pros of Using the Broker’s Recommended Appraiser
- Familiarity With the Process – A broker-recommended appraiser may be familiar with the lender’s requirements and expectations, which can streamline the process.
- Efficiency – Since the broker has worked with the appraiser before, there may be fewer delays in getting the appraisal scheduled and completed.
- Local Market Knowledge – If the appraiser is experienced in your area, they may provide a more accurate valuation based on current market trends.
The Cons of Using the Broker’s Recommended Appraiser
- Potential Bias – While appraisers are supposed to be independent, some borrowers worry that an appraiser recommended by a broker might feel pressure to deliver a valuation that benefits the lender.
- Limited Choice – If you only consider the appraiser your broker suggests, you might miss out on hiring someone with more experience or better reviews.
- Cost Differences – Some appraisers charge higher fees than others, and you may be able to find a qualified professional at a lower cost.
Can You Choose Your Own Appraiser?
In most cases, you cannot directly hire an appraiser for a mortgage-related transaction. The lender must order the appraisal through an approved process, often using an AMC. However, you can ask your lender about their process for selecting an appraiser and whether there are multiple options available.
How to Ensure a Fair Appraisal
Ask Questions – If your broker suggests an appraiser, ask why they recommend them and whether they have multiple options.
Check Qualifications – Look up the appraiser’s credentials and experience to ensure they are licensed and reputable.
Understand Your Rights – If you feel an appraisal is inaccurate, you can request a Reconsideration of Value (ROV) by providing additional market data or comparable sales.
Bottom Line: Should You Use the Recommended Appraiser?
If the appraiser recommended by your mortgage broker is reputable, experienced, and unbiased, there’s no harm in using them. However, it’s always a good idea to do your own research and ensure you’re comfortable with the process. If you have concerns, discuss them with your lender to see what alternatives are available.
Would you like to learn more about how appraisals impact mortgage approvals? Let me know in the comments!
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