Q: "I am in the process of refinancing my home. The loan has been in the underwriting department for a few weeks already. Apparently, the appraisal process is taking an abnormally long time. Is there anything I can do to speed this process up?"
A: You are not alone. Due to the chaos in the mortgage industry, refinancing a mortgage can be next to impossible. You must make sure that you have enough equity to refinance. The part of the process that is hindering your effort, the appraisal, can take an undeterminable amount of time. Investors want to see accurate comparable sold properties to determine value. Appraisers are having a difficult time in one segment of the market obtaining this information due to low sales. Basically, there is nothing to compare the subject property to in order to determine value. Usually, an appraiser will use comparable properties that have sold within the past six months. Banks are now asking appraisers to provide comparable properties that are still for sale, expanding beyond the normal geographic radius and potentially using comparable sold properties from within one year.
These are truly challenging times for homeowners seeking to refinance. However, with the rates as low as they are, there is value if the loan clears and you put on a patience cap during the process.
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