What All Buyers Need To Know About The Home Appraisal Process

Once you have inspected your home, the next step will be to order the appraisal. Your lender will ask you to pay for an appraisal in advance. They usually cost $450-500. This is part of the closing costs first disclosed but it’s paid in advance and you will see it on your closing statement as a credit.

Do you know what a home appraisal is, or why it’s so important for you to have? Many people misunderstand this crucial component of the home buying experience.

In a nutshell, an appraisal is a valuation of your home; it’s a way for lenders to ensure that they aren’t providing a mortgage that isn’t worth what the home is worth. Your appraisal must match or exceed the value of your loan, otherwise you’ll run into hiccups.

An appraiser is someone who uses comparable sales in your neighborhood as well as the condition of your home in order to make a sound valuation of your home. They’ll include factors both inside and outside the house.

If an appraisal is lower than the amount you thought the house was worth, there are several options, including renegotiating the deal and paying the difference. If it’s higher, it benefits the buyer. But knowing more about appraisals, whether you’re a homebuyer or seller, can help the whole process go more smoothly. Use this graphic from our friends at Title Source to get started.

Click the graphic to see a larger version.

Ali Palacios, ABR, MCNE, TAHS

Realtor

Today's Home Realty

ali.palacios@todayshomerealty.com

Mobile - 832-418-0670

Fax - 832-201-7492

www.todayshomerealty.com

www.ilovehappyclients.com

9119 Hwy 6 S #230-116, Missouri City, TX 77459

Source: http://www.bestrealestateblog.com/buyers-need-know-home-appraisal-process?m=JnojPGPgYwNqRUqKIeuc

Comments

‘Tis the Season: 5 Reasons Why Winter is a Great Time to Buy or Sell a Home

‘Tis the Season: 5 Reasons Why Winter is a Great Time to Buy or Sell a Home It’s a common misconception that you shouldn’t try to buy or sell a home during the fall and winter months. This is generally considered the “offseason” in real estate. Many sellers mistakenly believe that the cold weather will keep buyers away and that no one is looking over the holidays. Unfortunately, many real estate professionals perpetuate this myth by advising their clients to “wait until the spring” to list their home. The truth is, homes are bought and sold year round. And while the market is typically quieter during the fall and winter, savvy buyers and sellers know how to use this slow down to their advantage. In fact, depending on your circumstances, now may be the ideal time for you to purchase or list a home. If you’re in the market to buy or sell, there’s no need to wait for the spring. Read on to discover the top five reasons that it can pay to ...

Should You Go Directly To The Listing Agent When Buying A House?

When you’re looking to buy a house, you might think it makes sense to go directly to the agent who’s listed the property for sale. Some of the more common reasons people give for doing so are: Why not ? Doesn’t it just make sense… The agent listed the property and is the one selling it. They know all about the house. They know all about the owner, so maybe you can get some inside scoop and a better deal than if you had your own buyer’s agent in the mix. Isn’t it like buying a car? You have to go to the dealer selling the car, so don’t you go to the agent who’s selling the house? Some people say they just didn’t know any better. It’s just easier than finding and working with a buyer’s agent. It’ll be easier to deal with owner. And, last but not least, if the agent is representing both the buyer and the seller, people feel like the agent will get them a lower price. Either because the agent is getting “both ends of the deal”, and therefore making more money, so th...

How To Get Your Roommate To Pay YOUR Rent

Rent isn’t cheap. It’s tough to afford a place on your own. So, you have roommates. Maybe it’s a friend or two. Maybe more. But it certainly beats living “alone”…in your parent’s basement. But you’re still not banking money… You’re saving some money by renting with others. But not tons. It certainly makes your housing costs more affordable, but it isn’t like you have so much extra every month to just go out and spend on whatever you want. So, it’s probably hard to even imagine saving enough to eventually buy a house. You figure that day will come eventually. But not anytime soon. You’ll figure it out someday. Probably not until you find someone you want to settle down with. Not until you and a significant other can combine forces (and bank accounts) to make that dream happen. But, at this point, you wrap that thought up with a nice bow and put it on a shelf. You rationalize it, and think… I’m still young. I’m too ...

Ready to buy a home?

Search This Blog