Forgive my ignorance if I’m not using the correct terminology. I’m contracted with an unlisted sale in north Atlanta metro where the seller wants a quick, private sale and doesn’t want the hassle of going on market or doing showings or open houses. We agreed to $367K. I anticipate having a down payment of roughly 45% from the equity of my current home, credit score well above 800.
Two lenders gave me a loan estimate worksheet with appraisal fee costing $450 and $550, but both called me shortly after saying it is no longer required. I’m paraphrasing but they more or less said the algorithms Fannie Mae uses tend to be conservative with the numbers and that if it waived it for me, it was a sure thing the property would appraise for higher than what the seller and I agreed to. I’m just wondering if waiving an appraisal is typically a good call to make. For what it’s worth, the house will be my family’s primary residence so I’m not so much worried about the value as much as I am having a place to call home. For comparison, similar properties in the same and nearby neighborhoods are selling for around $375 to $400K.