Appraisal Documentation Guide for Mortgage Processors
Appraisals confirm property value and condition. Ordering, reviewing, and managing conditions are among the most time-sensitive elements of processing.
What the Lender Requires
- Appraisal report from AMC-approved appraiser
- Comparable sales analysis
- Property condition rating (FNMA C1–C6)
- FHA/VA: additional MPR/MPS compliance documentation
- 1004D recertification if appraisal over 120 days old
How CTC Processes Appraisal Requirements and Documentation Files
- 01CTC orders appraisal through AMC immediately on intake
- 02Appraiser inspects property
- 03Report delivered
- 04CTC reviews for condition issues, adjustments, value
- 05Submit to underwriting
Common Conditions Related to Appraisal Requirements and Documentation
- Reconsideration of Value (ROV) if value below purchase price
- Repair requirements if condition rating is C4-C6
- FHA MPRs: peeling paint, safety hazards, roof condition
- Additional comparables for rural or unique properties
- Appraisal waiver (PIW/ACE) confirmation if applicable
How CTC Handles Appraisal Requirements and Documentation
Appraisal is the most common source of processing delays. CTC orders appraisals the day the file arrives — never waits for other conditions first. For rural Colorado markets, we confirm appraiser availability before ordering.
Frequently Asked Questions
What is an appraisal waiver (PIW/ACE)?
Some conventional loans qualify for a waiver where Fannie Mae or Freddie Mac approve value via AVM. CTC checks PIW/ACE eligibility at DU/LP submission on every conventional file.
What happens if the appraisal comes in below purchase price?
Options: negotiate price reduction, pay difference in cash, request ROV with supporting comps, or cancel. CTC coordinates ROV requests and provides comparable analysis.
What are FHA Minimum Property Requirements (MPRs)?
FHA MPRs require safe, sound, and sanitary conditions. Common issues: peeling paint, roofs with under 3 years remaining life, inoperative mechanical systems, broken windows, safety hazards.