Transferred Appraisals: What They Are and Why You Might Need One
What is a Transferred Appraisal?
During the home buying process, you might find yourself in a situation where you need to switch mortgage lenders. Maybe the original lender is taking too long, their rates changed, or they suddenly denied your loan. If you've already paid for a home appraisal (which typically costs $500 to $800), you might be wondering: Do I have to pay for another one?
The good news is, in many cases, you can do a Transferred Appraisal. This means your new lender can legally accept the appraisal report that was ordered by your original lender.
Why Would You Transfer an Appraisal?
- Cost Savings: You avoid paying another $500+ out of pocket for a second appraisal.
- Time Savings: Appraisals can take 1-2 weeks to schedule and complete. Transferring the existing report keeps your closing timeline on track.
- Protecting the Value: If the first appraisal came in at or above the purchase price, transferring it guarantees you keep that favorable value.
How Does the Process Work?
You cannot simply hand the PDF of the appraisal to your new lender. By law, the original lender must formally transfer the appraisal directly to the new lender through a secure portal (like the FHA Connection for FHA loans) or by providing a formal release letter and the original XML file.
For FHA loans, the appraisal is actually tied to the property itself for 120 days. This makes transferring an FHA appraisal relatively straightforward, as the new lender simply takes over the FHA case number.
Can a Lender Refuse to Transfer It?
For FHA and VA loans, lenders are generally required to transfer the appraisal if the borrower requests it. However, for Conventional loans, the original lender is not legally obligated to transfer the appraisal, though many will do so as a professional courtesy.
We Can Help Save Your Deal
If your current lender is dropping the ball and you need to switch fast, don't let the fear of a new appraisal stop you. Call Area Lending today at 407-329-9700. We specialize in rescuing loans and can often transfer your existing appraisal to get you to the closing table on time. (NMLS #2079475 / #2007119).
