Is your lending pipeline a well-oiled machine or a game of “hurry up and wait”? At our core, we understand that loan underwriting is high stakes enough; valuation delays only add to the stress of maintaining proper collateral risk analysis. As we move through 2026, the competitive edge goes to lenders who prioritize tools that deliver speed and accuracy without sacrificing diligence.
Traditionally, the industry leaned on a “one-size-fits-all” approach to valuations. While thorough, it is often a major bottleneck. A modern Risk-Based Valuation (RBV) strategy holds that the depth of the valuation approach should match the loan’s actual risk. By implementing a tiered credit policy, lenders can satisfy internal risk controls by using high-confidence data for low-LTV refinances and standard home equity profiles while reserving traditional appraisals for complex or high-risk assets.
The Real Cost of Waiting
A full, in-person appraisal for a standard refinance or home equity line of credit (HELOC) can take up to 20 days [1]. For the borrower, this is a frustration; for the underwriter, it is a stall in momentum when reasonable valuation alternatives are available. Our goal is to provide underwriting teams with “Defensible Data” (visual and algorithmic evidence that stands up to internal audit and secondary-market scrutiny) without the 20-day lead time.
Creating a Seamless Path to Approval
Beyond the calendar days lost to traditional methods, the underwriting process is often slowed by data gaps that trigger a cycle of manual intervention. While AVMs provide a fast, data-rich starting point, the most efficient workflows are those that front-load all necessary information to avoid mid-cycle pauses. By integrating condition-verified data at the start of the process, lenders can:
- Reduce Manual Overrides: Minimize the need for manual desk reviews by providing the “why” behind the AVM’s valuation through visual evidence.
- Proactively Address Rebuttals: Having property-specific data on hand from day one allows for a more accurate initial value, significantly reducing the likelihood of post-valuation revision requests.
- Ensure Straight-Through Processing: Verified data helps satisfy automated underwriting system requirements more quickly, keeping the file moving toward “Clear to Close.”
A Practical Solution for Loan Underwriting
Using an AVM is a standard way to get fast, data-driven valuations. However, even the smartest algorithms benefit from a “boots on the ground” perspective. We recognize that many underwriting teams prefer to pair AVM results with a view of the property’s current state to ensure accuracy.
Imagine two identical houses on paper. One has been meticulously maintained; the other has significantly deferred maintenance. An AVM provides a high-confidence market value based on millions of data points, but the addition of a property inspection provides the physical context needed to confirm that value. To pass muster with lending regulations regarding “Safety and Soundness,” a lender must be able to prove they have considered the physical condition of the collateral. Valligent’s VeroVALUE AVM + ValINSPECT solution is designed to provide that confidence.
- Real Value, Verified Condition: The VeroVALUE AVM gives an immediate valuation backed by multiple models and a clear Veros Confidence Score (VCS™). When combined with ValINSPECT, it helps underwriters validate value more quickly for low-LTV files and increases valuation efficiency.
- The Essential Condition Check: The ValINSPECT component delivers photographic, verified data on structural integrity, maintenance, and potential repairs. This provides the “meat” required for a sound decision. ValINSPECT Virtual is a cost-effective way to bridge the gap to final approval, connecting the property contact and inspector via a secure live video link to complete the report in a single session.
- Validation and Audit Readiness: After the reports are returned, they can be forwarded to an internal staff evaluator for review. This enables a trained expert to evaluate the results, saving the lender a step. For added protection, ValPROTECT can be added to select valuations to help mitigate loss exposure if the valuation is later found to be inaccurate.
The result is a comprehensive report that provides the lender with both the AVM value and the property condition in days, not weeks.
Strengthening the Underwriting Process
By using the AVM + Inspection approach for low-LTV refinances and home equity loans (which typically make up the vast majority of low-to-moderate risk volume [2]), lenders can:
- Maximize Workflow Continuity: Obtain condition-verified data up front to eliminate time-consuming rebuttals, manual desk reviews, and revision requests.
- Optimize Appraiser Resources: Cut appraisal costs and let senior staff focus on the complex properties that require deep manual analysis.
- Identify Physical Risk: Spot red flags such as deferred maintenance or unfinished renovations that don’t appear in a standard database.
- Enhance the Borrower Experience: In the age of instant delivery, borrowers are no longer satisfied with 30-day waits. Shortening this window is a massive win for Customer Experience and Net Promoter Scores (NPS).
Moving Forward
The question is not whether to use AVMs with inspections, but how to weave them into a smart, multi-layered strategy. Moving from an “all-or-nothing” appraisal process to a tiered workflow is an effective way to scale in 2026. This approach provides the transparency underwriters demand and the “safety and soundness” documentation that regulators require.
If you would like to learn how pairing VeroVALUE AVM + ValINSPECT can improve your workflow, contact us today.
Sources
1. Banks Valuation. “Home Appraisal Timeline and Process Guide for 2025.” Accessed November 2025. (Average appraisal time: 6 to 20 days; Fees: $300 to $450).
2. “Mortgage Bankers Association (MBA). ‘Home Equity Lending Study,’ July 2025. Data indicates high average FICO scores (771) and low CLTVs (51%), categorizing a significant majority of the portfolio as low-to-moderate risk.”
