Homebuyers in the Methuen area are looking for any advantage to get their offer accepted in the current real estate market. A property inspection waiver gives buyers a huge advantage. A property inspection waiver (PIW) is granted when lenders can use existing data about the estimated value of a property to originate a mortgage instead of relying on an appraiser to visit the property to determine the value. An appraisal is done to ensure the property is priced correctly and determine the loan to value ratio. A PIW or appraisal waiver helps homebuyers by speeding up the origination process and lowering the associated costs. In addition, a PIW makes your offer more competitive in the current seller’s market because you have fewer hoops to jump through.
What can I do to be a more competitive homebuyer?
Mortgage Equity Partners has developed a program to provide the PIW information in advance to our borrowers to make them more competitive in the bidding war. As a result, our borrower’s offers are accepted much more frequently by providing this information upfront to the seller.
What are the requirements to get a property inspection waiver?
- Finance a one-unit property
- Have a loan to value ratio that is equal to or less than 80%. (another way of saying this is a 20% down payment.)
- There needs to be a significant transaction history on the home and the community in which it is located
- The borrower needs to meet specific credit requirements
Am I eligible for a property inspection waiver?
So how does a lender like Mortgage Equity Partners offer an appraisal waiver program? Many mortgages originated in the US are underwritten by Fannie Mae and Freddie Mac. As a result, Fannie and Freddie have years of data on US housing inventory. In addition, they have data from public records, the MLS platform, and historical values for homes in the Merrimack Valley area. Frequently, this is enough information to determine whether a loan is eligible for a PIW.
We run the loan applications through an automated loan approval system that tells us the minimum valuation figure to support the requested loan. Sometimes, the system accepts the borrower’s loan application without the need for an appraisal. Basically, this means we accept the sales price or the estimated home value as the property’s actual value. Therefore, there is no need to send an appraiser to the home to do an onsite review.
Keep in mind that not every loan will qualify for a property inspection waiver. Often, manufactured homes, newly constructed homes, and multi-unit properties will not be eligible for a waiver.
At Mortgage Equity Partners, our Methuen-based loan officers will work with you to see if you are eligible for a property inspection waiver. This process is quick and easy and may help you win the bidding war for your Merrimack Valley dream home!
