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Alternative Appraisal Disclosure

When You Don't Need an Appraisal

Lenders do not always use real estate appraisers to determine the value of your property. The lender may instead use a property valuation model that is based on a compilation of similar home sale prices. As a home buyer, you may sometimes rely on an appraisal to confirm that you are not over paying for the property. Therefore, an alternative appraisal may not be acceptable to you and you can ask for a full appraisal. Expect to pay $300 - $400 for a residential real estate appraisal. As part of the loan application process the bank will require you to sign this closure acknowledging that the bank may use an alternative appraisal method

Alternative Appraisal Disclosure (Sample)

As part of the review of your mortgage loan application, the lender may obtain an alternative type of property valuation rather than a property appraisal. This means that the acceptability of your property as collateral for your loan may be confirmed by a property valuation model and/or an exterior-only inspection, or by some other means that is not an appraisal of the property. This appraisal alternative the lender obtain(s) is for lending purposes only and should not be relied upon to protect your interests in the transaction (for example, to confirm the purchase price of the property). If you prefer, you may request an appraisal in lieu of an appraisal alternative. The undersigned applicant(s) acknowledge(s) receipt of this notice on the _____ day of the month of ____________________,201_. ______________________ _____________________ Signature of Applicant Signature of Co-Applicant

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