Hi, I just received an Statement of Credit Denial from a mortgage company. Stated that the reason for denial is the value or type of colleateral not sufficient. Then it goes on to say that I have the right to a copy of the appraisal report. My question is what appraisal? I did not approve for any appraisal to be done. Because I not quite ready yet. I still have to sell my mobile home first. I just talked to them yesterday and told them I was not ready for an appraisal to be done and that I would call them when I was ready. And she said fine she would cancel it. But I never authorize it to begin with. Can they deny you credit on an appraisal that was not done? What I was told that I would have to pay for the appraisal of the land even though we had one done three years ago but everything was fine with my credit and they were no problems. I was just getting information together to see if I could get approved and then shop for the lowest interest rate. This is just an hard inquiry that is being report to the CRA's right? I guess this can't be avoided if I want to get a decent interest rate. I sorry I am new at this. It just sounds weird to be turned down for something that didn't occur. Thank you again for your help. sam and bunni
The lender would first check your credit before the appraisal process begins. If you didn't agree or pay for the appraisal, then it definitely wasn't done. It sounds like you didn't have enough for the down payment or the sources were unacceptable. Obviously you need to call the lender or broker and ask why you were denied. They are apparently not worth crap if they can't call you and discuss the problem over the phone.
There's a new form of appraisal being done - I call it the "pre-appraisal appraisal". It's a service offered by Experian (and others) that the lender does an inquiry, much like a credit bureau inquiry, and gets back a value based on property type, size, comparable sales, market trends, etc. Chase uses this to get an approximate, then (before the closing) does a traditional "hello, may I come in please" appraisal. Since this is all public info (how much you paid, how much your neighbors paid/sold for, etc.), there's not much you can do about it. http://www.experian.com/ecommerce/realestate.html -mj
MikeB, I called the mortgage company up to find out the reason for denial. When they have some one come up and take a picture of the land, they then go to the tax appraisal office for the appraisal on the land. Then they just add 10-15% to that amount to see if it is feasible to do the loan. Of course, it was not. He said the all the other mortgage company around here to that. We did have an appraisal we paid for done three years ago by GreenTree now Conseco came in around $15,000. So, I guess I will call one other company go through the process and see what interest rate I can get and go with the company with the best offer. And just have the two hard inquires on my report. It is too expensive to pay for each company's appraisal. thank you for helping me. sam and bunni
