Every mortgage loan officer in the US has a story about a massive challenge they dealt with surrounding an appraisal.  The appraisal came in too low; it took forever to get appraised, or the appraiser’s comps weren’t a fair assessment of the home. Something happened, and the deal went sideways.  The real estate market has experienced extreme shifts in the last three years that have impacted the importance of the appraisal process. Most home purchases with a mortgage require appraisal and personnel to monitor and manage the process.  Appraisal technology has streamlined this process, creating more automation and accuracy.  Here are the areas mortgage lenders must analyze when considering a new appraisal technology solution.

An appraisal takes time. The question is how much time it takes to schedule, complete, and submit to keep the mortgage loan on track.  Appraisal technology should provide features to improve this process so that the appraisals can get done more efficiently.

Costs are going up, and appraisals are no exception. Borrowers share the expense of the appraisal, and it is likely not a deal breaker, but expensive appraisal costs may impact the overall borrower experience. Understanding the costs of the appraisal and the expenses involved in managing it should be a feature of consideration when discovering new technology.

The appraisal is a subjective analysis that can be controversial.  When controversy happens, it can stall the loan process or jeopardize the entire mortgage.  Appraisal technology is improving the accuracy by aggregating many data points to ensure that a thorough examination is being done and all the variables are being considered to provide the most accurate outcome.

Several resources are involved in getting an appraisal done.  If there is an issue with the assessment, there may be several more people that get to join the party.  Technology should work to automate and decrease the number of professionals needed to complete an appraisal. This process should be relatively frictionless, predictable, and transparent to lenders and borrowers.

Appraisal technology is an excellent investment to improve the mortgage borrower experience.  Lenders should consider many tech solutions to discover how they may align with the business objectives and technology currently used to close a loan.  Check out the Appraisal Category on Mortgage Advisor Tools to learn more about the various companies working to innovate this process.