The Latest Shift in How Appraisals Are Handled Could Save Homebuyers Hundreds in Closing Costs—Eventually

It’s typically the last hurdle for homebuyers—and the process is about to get a face-lift.Last week, the Uniform Appraisal Dataset (UAD) 3.6, a major update to property valuation standards introduced by Fannie Mae and Freddie Mac, became mandatory for all new UCDP appraisal report submissions.UAD 3.6 is a new, digital form that appraisers will use to evaluate homes. Now, rather than the appraiser meticulously jotting down notes in longform paragraphs, the new system will allow appraisers to use extensive drop-down menus and checkboxes to make their evaluations. A proper appraisal can determine not only whether a buyer can qualify for a loan, but also whether they can save significant money at closing.Understanding the Uniform Appraisal Dataset 3.6After a buyer makes an offer, their mortgage lender will order an independent appraisal to confirm the home is worth at least what's being borrowed against it.If the appraised value comes in at or above the purchase price, the process moves forward as planned. But if it comes in low, that gap has to be resolved before the loan can close.The logic behind the UAD 3.6 update, according to Fannie and Freddie, is to create a “data-driven, dynam...