For buyers in Illinois utilizing mortgage financing to purchase their next home, a common question that comes up during the lending process is – when exactly as the borrower will I receive a copy of the home’s full appraisal report? Can I get it immediately after the inspection?
While lenders are the ones who officially order and pay for the appraisal to be completed, borrowers ultimately have the right to view the full detailed appraisal report on the property they are purchasing, under the Equal Credit Opportunity Act or ECOA.
When does the buyer get the appraisal report?
Buyers get the appraisal report close to the closing date (at least 3 days before closing day). After the appraiser inspects the home, he submits the appraisal report to the lender. The lender reviews the report and will send it to the buyer. Buyers have a legal right to view the detailed appraisal report on their property under the ECOA (Equal Credit Opportunity Act).
Typical Timeline for Buyers to receive Appraisal report
Here is a look at the typical timeline of when most Illinois buyers can expect to have the full appraisal report sent over by their lender:
Days 1 to 15: Initial Steps and Ordering of the Appraisal
After accepting the purchase contract, the buyer’s lender will order the appraisal during normal underwriting once the loan application is received.
Days 15 to 20: Property Inspection by the Appraiser
The appraiser will complete their physical inspection of the home and surrounding property. They will take photos and gather all relevant details needed to assess value.
Days 20 to 25: Research, Analysis, and Completion of Appraisal Report
The appraiser takes the time afterward to research recent comparable sales, analyze the market data, incorporate their inspection findings, run calculations, and complete the detailed written appraisal report.
Days 25 to 30: Lender’s Review and Approval
Once the full appraisal report is submitted to the lender, the lender will take additional time to thoroughly review it, follow up on any concerns with the appraiser, assess value conclusions, and ultimately provide final approval.
Day 30 to 40: Finalization and Delivery of the Appraisal Report to the Buyer
Only after the lender has completed a full review and signed off on the appraisal will they send a copy of the finished report over to the buyer/borrower for their records.
While buyers don’t receive access to the appraisal immediately after inspection, they are entitled to a copy at or just 3 days before closing once the lender has reviewed and approved the final version of the report.
The lender needs time to properly review the appraisal before the borrower sees it. Patience is required, but buyers will receive the finished appraisal report in adequate time prior to closing day.
What if the Appraisal comes back unusually lower than the Purchase price?
If for some reason the appraisal comes back unusually low compared to the contracted purchase price, the lender may choose to share the report with the buyer earlier in the process to transparently discuss the valuation gap and whether appealing the appraisal determination makes sense. Underwriters balance information sharing with appraisal review protocols.
Stay up-to-date with your Loan Officer
The key for buyers is communicating with your loan officer throughout the underwriting process to check on the appraisal status and value determination, even if you don’t yet have the report in hand. Ask questions and request updates as needed.
While receiving the full appraisal early on would provide helpful insight, know that waiting until the lender has reviewed and approved it follows standard industry protocols. Rest assured, buyers will get a copy of the finished appraisal with adequate time to review all details before reaching the closing table. Patience with this standard timeline goes a long way.