“It’s jump-starting the purchase season, giving our brokers an advantage to go out there in the market to real estate agents and have something unique to sell,” Ishbia said during a telephone interview. “We’re going to cover appraisals up to $600 for them. The average appraisal is $540. In unique situations, it won’t cover the whole amount, but for the great majority it will cover it. This gives consumers a better deal and helps our brokers too. It’s a win-win.”
The offer was introduced on Wednesday (Jan. 26) and runs until March 31. “We’ve gotten amazing response so far today, and we only rolled it out six hours ago,” he told MPA on the day the offer was launched. Asked to quantify the response, he noted it was “The amount of mortgage brokers saying ‘thank you’. It’s just opening the doors for our brokerage brokers, and that’s what it’s about. And, of course, it’s going to be great for consumers as well. Everyone’s winning.”
Appraisal costs are hefty for many people, Ishbia noted, particularly for first-time homebuyers. The credit will help ameliorate the costs involved in buying a home.
“People don’t realize when they’re buying a $250,000 house or a $450,000 house, paying $500 or $600 up front for an appraisal is a lot of money. What if it doesn’t go right? It’s the same price for an appraisal for a $500,000 house than it is for a $200,000 house or a $100,000.”