Appraisal Process

North Penn Financial has a list of preferred appraisers and we will engage an appraiser for your area. Typically an appraisal will cost $2500 to $4500 depending on the type of appraisal required, property type and the location of the property. The Borrower will be responsible for this cost at application.

Due to our banking regulations and loan securitization requirements, North Penn Financial must order the appraisal. If you have an appraisal that has been completed in the last three to six months, we will absolutely review that appraisal to determine if it can be acceptable to North Penn Financial. This is an exception situation. In all cases, it is helpful for us to pre-qualify and underwrite the loan if a previous appraisal can be provided to North Penn Financial. E-mail existing appraisal to: appraisals@northpennfinancial.com.

Please note that the existing appraisal might not be acceptable for our loan programs due to the appraiser not being an Approved Appraiser and/or the appraisal was not done in accordance with our minimum standards of appropriate formats and the required contents.

Our real estate department utilizes the appraisal report to assist in the determination of the property value. However, North Penn Financial Real Estate Analysts arrive at a valuation based on their review of the appraisal report and it is the North Penn Financial valuation that is utilized to compute the LTV.

All appraisals are subject to review by North Penn Financial's real estate department. All appraisals are desk reviewed, some require field reviews, and others are rejected as inadequate. In cases where there are questions concerning the appraisal report, the North Penn Financial real estate department will contact the appraiser for clarification. In many cases, appraisers are able to supply additional information to support their opinion of value; however, it is important to note that this process always delays the review process. North Penn Financial reserves the right to reject appraisals that are deemed unacceptable by our staff.

It is important that appraisers be engaged by North Penn Financial so that they are aware of North Penn Financial's appraisal requirements before the appraisal is started in order to avoid any misunderstandings. Also, appraisers need to make themselves available to North Penn Financial in order to avoid delay in the Appraisal Review Process.

Complete details about our appraisal requirements will be made available to the appraiser via our Engagement Letter.