The full explanation
The lender must explain it when it gives you the appraisal; only one request is allowed per appraisal, and it cannot be made after closing. The VA also lets you request one. On an FHA loan, the lender's underwriter requests it when the appraiser did not consider relevant information.
An example
The appraisal on the home Alberto wants to buy comes in below the price. With his agent, he gathers recent sales of similar homes the appraiser did not use and asks the lender for a reconsideration of value before closing.
You will see it in…
- The lender's notice explaining the process, along with your copy of the appraisal
- The VA's pages on what to do if the appraisal comes in low
- The comparable sales in the appraisal report
