My Financial Healthcheck

Here are the 10 things your appraiser must do or provide for all FHA appraisals done after April 1st, 2009:

1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71).
2. At least 2 comparable sales within 90 days of appraisal date.
3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables.
4. Bracketed listings using both dwelling size and sales price when possible.
5. Adjust active listings to reflect the List To Sales Price Ratio.
6. Adjust pending sales to reflect contract sales price when possible.
7. Include original list price and any revised list prices.
8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales.
9. Absorption Rate Analysis.
10. Known or reported sales concessions on active and pending sales

This does not make much sense to anyone that not’s in the mortgage business. It’s just one more example why it will continue to get more difficult to get a mortgage.  If it’s not credit scores or income, the difficult appraisal process will prevent you from being approved.