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who pays for a desk review when purchasing a home

Asked Jul 28, 2012, 03:07 PM — 5 Answers
Im in the process of purchasing a home through an FHA loan. I was told I will need to have two appraisals in which I was responsible for paying which cost a total of 1,050 for both. I was told I had to pay for two appraisals because my LTV is 96%. As of Friday I was also told I needed to have a desk review done in which I was also responsible for paying which cost $340 because there are no comps for the property I'm puchasing. Are these true expenses in which I am responsible and required to pay and have done or am I being ripped off?

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5 Answers
Fr_Chuck's Avatar
Fr_Chuck Posts: 72,965, Reputation: 37216
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#2

Jul 28, 2012, 03:17 PM


welcome to buying a home and after paying all of that you still may not get the loan if the numbers are not right.

I would be really worried there is no "comps" in the area. why is there not other homes like this one selling in that area.
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joypulv's Avatar
joypulv Posts: 12,514, Reputation: 9530
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#3

Jul 28, 2012, 03:19 PM
The loan applicant pays for everything required to obtain the loan. I've never heard of a desk review but I can imagine such a charge if there are no comps. Every lender, including FHA, was burned during the last 10 years and the process is much tougher now.
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lwright2's Avatar
lwright2 Posts: 2, Reputation: 1
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#4

Jul 28, 2012, 03:31 PM
Thank you. The house is a new build from 2010 in which no one has purchased the property since it was built. There are two houses next to it that was built in the same year as that one, but they were also purchased the same year they were built, which is two years ago. I guess this is real frustrating to me because I wasn't expecting soo much out of pocket expenses when purchasing a house even prior to making it to closing.
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AK lawyer's Avatar
AK lawyer Posts: 10,076, Reputation: 4242
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#5

Jul 28, 2012, 03:50 PM
Quote:
Originally Posted by lwright2 View Post
... The house is a new build from 2010 in which no one has purchased the property since it was built. There are two houses next to it that was built in the same year as that one, but they were also purchased the same year they were built, which is two years ago. ...
And that means they aren't comparable sales? "Comps" don't have to be exactly the same layout, location, date of sale, etc., you know.

And isn't 96% LTV one of the practices which got us into the present economic mess?
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ScottGem's Avatar
ScottGem Posts: 58,571, Reputation: 28375
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#6

Jul 28, 2012, 06:38 PM


Quote:
Originally Posted by AK lawyer View Post
And isn't 96% LTV one of the practices which got us into the present economic mess?
I know this isn't what you asked,about, but I have to agree with AK's point here. The current mortgage crisis was built on loans made where there was little equity. and when property values fell they owners were stuck with upside down loans.

I would be very careful about purchasing a house in those conditions. Unless your income can support this loan you might want to reconsider this house.
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