When you buy a rental property and finance the purchase you know more perhaps than many others that the lender takes your application and documentation then verifies what is provided through various third parties. For instance, on your application there is a field asking you for your gross monthly transferring a property appraisalincome. You not only enter the amount but provide the lender with copies of pay check stubs and W2 forms.

The lender accepts that information yet contacts the IRS directly to verify the information provided. There are few things that can escape this third party validation.

The property appraisal is just such a document. In fact, the lender doesn’t even order the appraisal directly but places the appraisal order through a third party who then selects the appraiser. This process creates a wall between the lender and the appraiser. One of the problems that helped create the housing debacle of the last decade involved a few bad apples that got too cozy with one another. If a lender needed a specific value in order to place the loan, the lender would order the appraisal directly with an amount the appraiser needed to provide. If the appraiser denied the request, the lender would simply find another appraisal. This practice has since been halted as of 2009.

But what if you have an application with a completed appraisal and decide to switch lenders? Can you take the appraisal with you and transfer it to the new lender? Maybe. The original lender will have to agree with the request and release the report. The new lender must also be amenable to the transfer and it’s quite possible the appraisal won’t be accepted and a new one ordered. It’s at the discretion of the lenders as the borrowers have no say in the matter. You can request a transfer, but that’s about all you can do.