Two appraisals to get a Jumbo mortgage

There are going to be some instances where you’re required to get two appraisals, usually only on a jumbo loan. And usually only on jumbo loans that are over $1.5 million.

Let’s say you’re buying a $2 million home. You’re putting 20% down. You’re borrowing $1.6 million. Since the loan amount is over $1.5 million, that will potentially trigger a requirement for two appraisals.

I’ve done a few of those deals in my days. They can have the possibility to be difficult because getting one appraiser to agree to the value is difficult enough as it is. What if one appraiser says, “Yes, it’s worth $2 million.” But another one says it’s $1,980,000? They’re going to use the lower appraisal. And now we’ve got a problem. We’re technically $20,000 short, even though another appraiser said $2 million.

So just realize that if you’re borrowing over $1.5 million, it may trigger the requirement for a second appraisal. Which I avoid at all costs if I can. Not only is it a hassle, it’s extra cost for you as a buyer of a jumbo property. Hope that helps.

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