TCO APPRAISALS understands that mortgage lending can be a confusing process for the average homeowner. Our team is here to help you through the process including informing you of the recent changes in the appraisal industry. We want to cover any misconceptions that the borrower/buyer may not know about during the lending process including HVCC and the Appraiser Independence Requirements (AIR).

What Loans Are Affected By Appraiser Independence Requirements (AIR)?

AIR applies to all conventional, single family (1-4 units) loans that originated on or after October 15, 2010. The requirements of AIR were specially developed by the Federal Housing Finance Agency (FHFA), Fannie Mae, Freddie Mac and other key industry participants to replace the outdated Home Valuation Code of Conduct (HVCC).  The updated requirements continue to maintain the spirit and intent of the HVCC while also providing important protections for home buyers, mortgage investors and the housing market.

Does AIR Apply to Non-Origination Valuation Activities Like Appraisals Performed for Loss Mitigation Activities?

No, it does not. AIR only applies to the loan origination process. AIR is not applicable to a lender’s foreclosure/REO process or any other type of loss mitigation activity.

When Do I Need My Own Appraiser?

When you are getting a mortgage loan, the lender will most likely select the appraiser, but occasionally, a borrower may choose his or her own appraiser depending on the type of loan. The appraiser is an important part of the mortgage process because they will provide both you and the lender with an impartial and unbiased valuation of the property by using their extensive knowledge and experience. The appraiser will back up their conclusions with assembled facts, statistics and other pertinent information. Their analysis of the data will help them accurately determine the property’s value.

What Is The Difference Between an Appraisal and a Home Inspection?

An appraisal and a home inspection are each a report based on an inspection of a property, but the appraisal is for the purpose of determining market value, while the home inspection is used to identify any issues with the condition of the home. Both are essential elements of a home purchase, while an appraisal is also required in a refinance.

When would I need a trustworthy real estate appraiser?

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When Selling Your Home

An appraisal of the property’s value is an important step in determining your home’s listing price. You want to price your home right rather than overpricing it and it sitting on the market for months

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When Buying a Home

If you want to make an offer on a property it is important to ensure the property is worth the amount of money you are willing to pay. Oftentimes the lending institution requires a professional appraisal to be done on the home

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When You Need a Loan

If you are seeking other type of loans (Home Equity Line/Loan) you could use your home as the primary collateral. If you do this it will be necessary to have a current valuation of the home by a professional appraiser.