Top Key Factors that
affect your Appraisal
Annette Bui| Updated February
26, 2019 | Mortgage Programs 101
The home appraisal process is a crucial aspect of getting a mortgage loan whether it is on a new purchase or refinance.
Top things to consider include:
Working water/electricity
Ensure the water
heater has double straps and make sure the carbon monoxide detectors
are in working order.
Condition/Esthetic
appeal
No chipped paint,
or cracked windows, eliminate clutter as much as possible.
Make note of any recent upgrades or renovations made to the property. While the
amount invested in upgrades will not directly add the same dollar value to the
property. It will be taken into consideration for overall assessment.
Fair market value
Appraisers identify fair
market value based on activity on the market within the last 6 months. Home
sales taken into consideration will be within a half mile or closer unless
there are limited houses in the area. The appraiser will be selected through a
third-party appraisal management company to ensure to influence is made by
affiliate parties. They will need to be somebody that is local to the area and
understands local market.
Key factors
Key factors for
appraisals in a government loan such as FHA or VA is this report will adhere to
the property over the next 6 months. This means if for some reason the loan
transaction is not closed, the homeowner or buyer may not get a new appraisal
of higher value until this time frame has passed
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