{"id":8714,"date":"2019-11-23T07:05:21","date_gmt":"2019-11-23T12:05:21","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=8714"},"modified":"2020-12-29T02:02:19","modified_gmt":"2020-12-29T02:02:19","slug":"property-inspection-waiver","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/property-inspection-waiver\/","title":{"rendered":"Property Inspection Waiver Means No Appraisal Required"},"content":{"rendered":"\r\n

Buying or refinancing a home means there are closing costs<\/a>. Obviously, an appraisal is a given since it must provide the property’s value. Although, sometimes an appraisal waiver is possible. Also known as the property inspection waiver, this allows a homeowner or buyer to save time and money by skipping the appraisal process. Usually, questions then arise such as: What is an appraisal waiver, how do I get one, should I use a PIW, is there a cost, and does my lender honor a PIW?<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

What is a Property Inspection Waiver?<\/h2>\r\n\r\n\r\n\r\n

A key part of the home loan process is ensuring that the collateral for the loan is adequate. That’s where a real estate appraisal comes in. Depending on the area, property type or size, loan type, and appraiser, the appraisal cost may range from $450 – $750. Even more for some scenarios! But, sometimes the appraisal may be waived on a purchase or refinance.<\/p>\r\n\r\n\r\n\r\n

Appraisal Tips to Save Time and Money<\/a><\/div>\r\n\r\n\r\n\r\n

When lenders submit for an automated Fannie Mae and Freddie Mac conventional loan pre approval, part of the review is the property value. On any automated underwriting system, lots of calculations are being performed. Simultaneously, many risks and benefits are being weighed to determine if a loan approval is warranted. Part of this pre approval process includes researching the value entered for the property. Fannie or Freddie’s automated system compares the entered value \/ price to its compiled data on the local real estate market.<\/p>\r\n\r\n\r\n\r\n

If the file is pre approved and there is enough data to support the value, lenders will receive a message such as “Fannie Mae accepts the value entered”. In other words, the property inspection waiver may be used. Resulting in the ability to waive the appraisal process and cost!<\/p>\r\n\r\n\r\n\r\n

Property Inspection Waiver Disclosure<\/h3>\r\n\r\n\r\n\r\n

Let’s say that the pre approval allows for an appraisal waiver and the borrower accepts. Then, the lender must provide all borrowers on the loan with a property inspection waiver disclosure.<\/p>\r\n\r\n\r\n\r\n

When Does Fannie Mae Allow a PIW?<\/h2>\r\n\r\n\r\n\r\n

The following are the Fannie Mae conventional loan property inspection waiver requirements. First, the property must be a single unit home which includes Fannie approved condos<\/a><\/strong>. Next, the loan must receive an automated pre approval. Then, the following are requirements for purchases or refinances…<\/p>\r\n\r\n\r\n\r\n