Drive-by appraisals are a type of limited appraisal conducted without an interior inspection of the property. They require shorter forms and produce faster turnaround times, which both lenders and borrowers like.

From the lender’s point of view, the appraisal is only a small part of the lending decision. Often they are more concerned about your income and credit history than what they could sell your house for if you defaulted on the loan and they had to foreclose. When interest rates are low, appraisers often get backed up for weeks and become a bottleneck in the mortgage lending process.

While drive-bys can be useful in urban areas with cookie cutter subdivisions, they may not be appropriate in rural areas where every property is different and many homes can’t even be seen from a public roadway. Appraisers increase their liability exposure by accepting drive-by assignments.

The lending industry has become highly competitive. Banks have merged, streamlined the loan process, closed branch offices and installed automated tellers. Lenders are using more limited types of appraisals including computerized automated valuation models to support their loans. Today, you may be able to buy a house, refinance or get a home equity line of credit without ever seeing an appraiser.