Illegal to use same appraisal with multiple mortgage brokers?
Question: I need to learn more about the matter of “releasing” an appraisal. I’m in the process of re-financing my condo. I started with one mortgage broker, and paid an appraiser directly to prepare an appraisal. Then I found a new mortgage broker with a better deal, and had my appraiser prepare a copy of the appraisal for the new broker. Now I’ve found a third (and final) loan provider for whom I’d like to get a copy of the appraisal. My appraiser says he will not prepare one until I get a “release” from each of the two earlier mortgage brokers. I’m trying to work with all three loan brokers simultaneously to improve my chances of actually getting a loan. I’m a difficult borrower and previous loans have had all sorts of last-minute problems – this time I’m trying to avoid that situation by keeping my options open. Is what I’m doing illegal (as advised by my appraiser)?
Answer: How much of a difference is there between these loans? Do all your loan brokers know that you are dealing with three brokers at once? Besides the obvious, what do you mean by “I’m a difficult borrower.”
If you are willing to pay for the appraisal to be redrafted, the broker should have no problem signing the release, however you are putting him in a situation of liability should that appraisal be used for purposes other than obtaining a mortgage loan i.e. solicitors etc.
What type of loan are you looking for, and what are the three offers? Are any of them in writing? It shouldn’t be that hard to get you a “stated income” loan with good credit at 80% loan to value…..you should be around 7.5% and no points with an APR around 7.8% fixed.
I cannot understand why you would need three brokers at the same time. Do you feel compelled to get three bids on any service that you buy? Remember, rates are a moving target like the stock market. You eventually have to “lock” a rate, and take what you get at that point. It is highly unlikely you will get the absolute rock bottom of the market no matter how hard you try, just like stock purchases.
As for the appraiser, he came to you on the recommendation of the broker, and although you paid for it, the broker has to release it. You have a right to a copy of it. There are numerous reasons for this, liability is one.
Let me know if I can be of further assistance.
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