.
|
 |
- Daily Industry News - including mortgage rates, reports,
home sales and more!
|
|
Read and submit Real Estate Questions & Answers here.
|
|
Search Communities in NJ, including Home Styles and Walk
Scores for neighborhoods - with listings of nearby restaurants,
schools, stores, parks, etc
|
|
Search NJ Home Property Sales Records, Tax Records, NJ School
Report Cards, stats and more!
|
- Read Main Street Realty's newsletter online,
or sign up to receive it via email.
|
Read and comment on Main Street Realty's BLOG.
|
|
Check out stories & articles about Main Street Realty.
|
- Mortgage calculators and more!
|
- Recommended Title Company, Home Inspector and more.
|
|
 |
|
|
 |
 |
 |
|
 |
|
|
|
|
Home Buyers Guide - The Appraisal
Buying a home can be a complex process
with many important steps. You have probably looked at several homes
before finding the right one. Then you submitted a purchase offer.
After one or several counteroffers, the purchase offer has finally
been accepted. Congratulations, you have almost bought a home.
There are still several steps necessary, which must take place to
satisfy the conditions of the purchase agreement. The first of these
steps is getting the appraisal done. In most instances, the lender
will only loan about 80% - 90% of the value of the loan. The buyer
must come up with the balance, called the down payment. Some types of
loan may allow the lender to lend 100% of the appraised value.
However, the key to this is still the appraised value of the property.
A licensed real estate appraiser performs this service. The lender, in
most circumstances, will want to use their own appraiser. The
appraiser will assess the property using a complex set is criteria to
arrive at the appraised value of the property. Technically, this value
is just the opinion of the appraiser of what the property is worth,
but the result of the appraisal is king when it comes to getting your
home loan.
If the property appraises for less than the purchase price, then you
will have decisions to make. The bank probably will still loan you the
money, but only a percentage of it. You can still buy, but you will
have to make up the balance some other way. Alternatively, allow the
purchase agreement to lapse and keep looking at other properties. If
the purchase agreement lapses because the property did not appraise to
the purchase price, the buyer's money should be returned.
If the property does appraise, the deal moves forward with the other
conditions of the contract. Still on the agenda as you move towards
closing are the home inspection and title search.
The appraisal is the most important condition met in the purchase
agreement. It can make or break the deal, depending upon the results.
However, once the property appraises, you are well on the way to
closing.
|
|
|
|
|
| |
|
| |
|
|
|
|
|
