Financing “Vote of Confidence”

One of the best, early signs that the Buyer’s lender is on top of things — and a good omen for final underwriting approval generally — is when the lender orders the appraisal for the day after the Buyer’s inspection removal deadline.

That’s in contrast to the usual timetable, in which the lender waits for the post-inspection “all clear” from the Buyer’s agent, then orders the appraisal.

Depending on the time of year, the resultant delay can be 4-7 days or more.

No biggie if the closing is more than a month away, but potentially precious time if the closing is faster.

Rescheduling Risk

Is there a downside to a lender pre-ordering the appraisal?

Sure, but it’s minimal.

While the appraisal will need to be rescheduled if there’s an inspection hiccup, most of the time, there isn’t.

So, assuming the inspection goes smoothly, the appraisal will occur as scheduled, without any prodding or follow-up required on the listing agent’s part.

In turn, a lender who expeditiously orders the appraisal is signaling that they’ve received the file from the Buyer’s agent, and knows when the Buyer’s Inspection Contingency expires.

A lender who knows that date very likely also knows the Written Statement deadline and the closing date . . . and will (continue to) be vigilant about keeping the file on track.

See also, “The 2nd Most Important Date in a Home Sale.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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