For a refinance transaction, the borrower asks the loan officer if they can use an appraisal that was completed 8 months ago for their original purchase. Under typical lending guidelines, this appraisal:
Correct Answer
B) Cannot be used because it exceeds the typical 120-day age limit
Most lenders and investors require appraisals to be no more than 120 days old at closing. An 8-month-old appraisal would exceed this timeframe and typically require a new appraisal to ensure current market conditions are reflected.
Why This Is the Correct Answer
Most lenders and investors require appraisals to be no more than 120 days old at closing. An 8-month-old appraisal would exceed this timeframe and typically require a new appraisal to ensure current market conditions are reflected.
More Origination Questions
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For a purchase transaction, when must the borrower receive the Closing Disclosure if the closing is scheduled for Friday at 10:00 AM?
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A borrower provides a bank statement showing a large deposit of $15,000 three days before applying for a mortgage. The borrower claims it's from selling personal property but cannot provide documentation. How should the MLO handle this situation?