Inflated Home Appraisals Cost Homeowners
Recent news that New York’s Attorney General is working with Fannie Mae and Freddie Mac toward an agreement requiring independent appraisals for mortgage loans purchased by Fannie and Freddie underlines the importantce of understanding how appraisals impact mortgage applications.
Mortgage lenders employ licensed appraisers to establish home values for mortgage approval. A home appraisal typically costs about $400. Paying for several appraisals can limit your ability to make simultaneous mortgage applications. The good news is that independent appraisals can reduce the practice of inflating home values for the purpose of approving mortgage loans.
