Determining A Home’s Value With An Appraisal

Are you interested in buying a property, selling a home, or refinancing an existing mortgage? One necessary step in any of these situations involves getting a home appraisal, but what exactly does that involve? Home appraisals are thorough property inspections that compare the value of your home to other properties located in your area to help determine the total value of your home. This helps selling or refinancing a home run more efficiently. If you are interested in purchasing, selling, or refinancing a home in West Palm Beach, St. Pierce, or Tampa Bay, Florida, CTC Mortgage can help. Read on to learn more about determining a home’s value with an appraisal.

Understanding The Home Appraisal Process

During a home appraisal, an unbiased licensed professional will evaluate the condition and value of a property, and they take place when a property is bought, sold, or when a mortgage is refinanced. A lender will want to ensure that a borrower has the capability to make their mortgage payments and they aren’t overborrowing money when buying a property, therefore the home serves as collateral for a mortgage. Obtaining a home appraisal helps protect a lender giving out more money than they might be able to recover in the event that a borrower is unable to pay back the loan. If a borrower does not make the required mortgage payments, a lender may have to sell the property to recuperate their lost funds.

What Are The Steps In A Home Appraisal?

When a buyer makes an offer on a home, the offer is accepted, and a purchase agreement has been signed, a lender requests a home appraisal. The home buyer (borrower) is responsible for paying for the home appraisal, which typically costs around $350. During a home appraisal, the appraiser will analyze both the exterior and interior of the property, and will look to identify any possible issues with the home, such as electrical or safety problems, to determine a home’s worth. A home inspector will also look at other factors, including the amount of rooms and bathrooms a home has, the home’s location and neighborhood demographics, the overall square footage of the property, etc. A borrower has the right to review the appraisal report, and if the report is near the amount of their offer, the loan can be processed. If the appraised value is less than the anticipated amount, the borrower has the chance to request a different appraisal and have the lender reevaluate the original report.

Get Assistance Today When Buying A Home

Getting a home appraisal is one step on the path to home ownership. If you need help with home financing and understanding the necessary steps to take when buying a home in West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.

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