Now we have another thing to watch out fore. Informing the appraiser…
http://www.wsj.com/articles/when-a-mortgage-hinges-on-home-values-1418835033
Low appraisals are rare for Bank of America ’s jumbo mortgages compared with two years ago, says John Schleck, senior vice president, centralized sales executive for Bank of America. “With rates this low and values pretty stable, it may be a good time for a borrower to step in before values go higher,” he adds.
If an appraisal does come in lower than expected, here are a few tactics a borrower can try:
• Higher LTV jumbos. More lenders, including Bank of America and Wells Fargo , are offering jumbo mortgages at 85% loan-to-value ratio.
• Inform the appraiser. While federal regulations forbid lenders from interacting directly with an appraiser, a refinancing homeowner can drop the needed loan amount into conversation during an appraiser visit, Mr. Carson says. Real-estate agents also can provide information about a property to the appraiser.
• Rebuttal. A last recourse is for the lender to file a rebuttal to the appraisal- management company, pointing out errors and suggesting alternate comparables. However, these rarely result in an amended appraisal, Mr. Carson says.
