JDgreen227
Super Member
Guys, last week I visited my credit union and applied for a home equity loan. Said property I wanted the loan for is paid off and was given an actual appraisal inside and out by an appraiser back in early 2000, and his valuation of the property was $120,000 then. Cost me $125.00. In August of 2002, I refinanced to build on, and the same appraiser did a "drive by" appraisal then that cost me $150.00, and the appraisal for that time was $140,000. WOW. A $20,000 increase (on paper) in value in 2 1/2 years, and the taxes only went up $30 a year in that time period. The refinance money I borrowed was used to build on to and modernize the house, and it went from a 900 square foot 2 bedroom, 1 bath, to a 3-4 bedroom, 2 1/2 bath with 2500 square feet and full finished basement in the addition.
So, my credit union loan officer says I have to pay a $325 appraisal fee to borrow $70,000.00, and I just got a call from the SAME APPRAISER who did the 2000 and 2002 appraisals. He has some questions for me, and no, I have not contacted him yet. According to the paperwork, I will have to pay the appraisal fee even though the 2000 and 2002 appraisals clearly say the property is worth far more than the $70,000 I am borrowing, and should they check my tax records at the township they will learn my property has a fair market value of more than 4X what I want to borrow.
Can anyone tell me why appraisals are even required in situations like mine? The lender knows the property has no liens and I have clear title....and yes, I also have to pay an inflated fee for a title search. Makes no sense to me.
So, my credit union loan officer says I have to pay a $325 appraisal fee to borrow $70,000.00, and I just got a call from the SAME APPRAISER who did the 2000 and 2002 appraisals. He has some questions for me, and no, I have not contacted him yet. According to the paperwork, I will have to pay the appraisal fee even though the 2000 and 2002 appraisals clearly say the property is worth far more than the $70,000 I am borrowing, and should they check my tax records at the township they will learn my property has a fair market value of more than 4X what I want to borrow.
Can anyone tell me why appraisals are even required in situations like mine? The lender knows the property has no liens and I have clear title....and yes, I also have to pay an inflated fee for a title search. Makes no sense to me.