Easy Alternative Appraisal Tips

Follow these steps for hassle-free appraisals

It is common for alternative lenders, like Neighbourhood, to focus primarily on the property rather than income. Whereas bank, institutional, and monoline mortgage lenders focus mainly on the borrower's income and credit.

On alternative deals, the appraisal report has a lot of bearing on the lending decision, so here are some best practices:

1. Check to see if the lender you are working with has an approved appraiser list

• Appraisers on this list will be more familiar with the lender's requirements in an appraisal report.

2. When ordering the appraisal, be sure that the applicant's name and address are correct.

• Incorrect information may result in additional back and forth with the appraiser and underwriter.

3. When you receive the appraisal report, have a glance to ensure the following are correct:

• Applicant's name
• Lender name
• Address of the property
• Appraised value

4. If anything in the appraisal report isn't what you expected, let your underwriter know about it so they can help you find a solution.

Imagine the appraisal report as a cover letter and resume for the property. The appraisal having correct information instills confidence and will help your deal get approved.