What an appraisal waiver is
An appraisal waiver means the loan can close without a full appraisal. Instead of sending an appraiser, the loan program relies on data it already has about your home, such as prior appraisals and recent sales nearby.
It can save time, since scheduling an appraisal is often one of the slower steps in a refinance.
How it works
When your loan application runs through the program's automated underwriting system, the system may offer a waiver. Whether it does depends on things like the loan type, your equity, the property and how much data exists on your home.
If a waiver is offered and the loan qualifies, the lender can accept it. If not, an appraisal is ordered as usual.
Who tends to qualify
There's no list you can check ahead of time, but waivers are more common when:
- You have substantial equity in the home
- It's a rate-and-term refinance rather than a cash-out
- Your home is a typical single-family property with good sales data nearby
- The home had a recent appraisal on file
Streamline refinances
Some government programs, such as the FHA Streamline and the VA IRRRL, are designed to refinance an existing loan with less paperwork, and often without a new appraisal. Your loan consultant can tell you whether your current loan fits one of them.
Is skipping the appraisal safe?
A waiver isn't a shortcut on the loan's review. The program still evaluates the home's value using its data. The trade-off is that you don't get an appraiser's independent look at the home, which some owners like to have.
What to have ready either way
Whether or not a waiver is offered, the rest of the refinance looks the same. Expect to provide recent pay stubs or tax returns, bank statements, your current mortgage statement and your homeowners insurance details.
If an appraisal is ordered, make the home easy to access and keep a short list of upgrades and repairs with dates. It helps the appraiser see what has changed since you bought.
What it means with CapCenter
Many refinances need an appraisal, but not all. Either way, CapCenter covers the appraisal under ZERO Closing Costs when one is required (restrictions apply; see Offer details). So a waiver mainly saves time rather than money.
