If you are buying a home in Illinois and obtaining mortgage financing, the property appraisal is obviously a critical step in the loan approval process. But when exactly during the mortgage transaction timeline can you expect the appraisal inspection and report to occur?
When is the appraisal ordered in the loan process?
The appraisal is typically ordered by the buyer’s lender once their initial loan application package has been submitted and is under the early stages of underwriting review. The timing can vary slightly from lender to lender, but most often the appraisal process itself begins approximately 2 to 3 weeks after formally applying for an Illinois home mortgage.
Here is an overview of the common timing periods:
Days 1 to 5: Submit mortgage loan application
Comprehensively complete and submit the full mortgage loan application and required financial documentation to the lender. Be sure your application package is fully complete.
Days 5 to 15: Initial review of your application
The lender and their underwriters will do an initial review of the loan application, documents provided, purchase contract, and overall transaction details. Preliminary underwriting begins.
Days 15 to 30: Lender Orders Appraisal
Assuming no major issues or red flags with the initial application, the lender will order the appraisal from an approved appraiser around the 2 to 4 week mark of the loan review process starting.
Days 20 to 35: Appraiser submits the report
The appraiser will now complete their inspection visit, research recent comparable sales, and provide the full appraisal report back to the lender for review.
Days 30 to 40: Lender review period
The lender does their in-depth appraisal review and works to issue final approval once satisfied with the appraised value.
Why do lenders order the appraisal later in the underwriting process?
The reason lenders order the appraisal a few weeks into the underwriting process is to allow ample time to review the borrower’s application prior to incurring the cost of the appraisal.
The lender should not conduct the appraisal too late in the process, so they have sufficient time to review the full valuation report and address any concerns promptly.
Neither should they order appraisals at the very beginning of the mortgage transaction, nor delay them until it’s too late in the process, as it could cause unnecessary delays in loan approval.
What is the optimal timing for conducting the home appraisal?
It’s actually optimal to have the appraisal done after any preliminary home inspections by the buyer so the appraiser can factor those property conditions into the appraised value. Don’t worry about trying to expedite or “rush” the appraisal – trust your lender to strategically time ordering it at the appropriate stage.
Just be sure your loan officer or mortgage company has received all required income, asset and documentation details upfront in your application to prevent processing delays that could impact appraisal scheduling. The smoother underwriting goes, the quicker you’ll get to appraisal order time!