Most lenders insist on charging borrowers up front for all appraisals. This creates significant delays b/c borrowers cannot be charged until all loan disclosures are prepared, reviewed by borrowers and signed. This can take as long as a week.
At JVM, we order all purchase appraisals as soon as we get the contract. We pay for the appraisals up front and only collect at close of escrow, if and when the transaction closes. If the transaction does not close, we are not allowed to collect for the appraisal, and we eat the fee.
This costs us thousands of dollars but it is worth the risk b/c we understand how important it is to get appraisals done quickly.
We also order every appraisal as a rush, and we do not pass the rush-fee on to the borrower. Eating all the rush fees also costs us tens of thousands of dollars, but this too is necessary for two reasons: (1) we get appraisals back much sooner; and (2) appraisers do better quality work b/c they are getting paid the extra money they badly deserve.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646