Understanding Your Home’s Value
Buying a home is an exciting time. You may have been dreaming of homeownership for a long time and now it’s finally coming to fruition. You are super excited, and you’ve found the home of your dreams. Yet you know the work has just begun for purchasing your new home or refinancing an existing home. Getting a home appraisal is an important step of the mortgage loan or refinancing process.
DOT Mortgage Brokerage is led by Lisa Marie Schwartz with a focus on delivering diligent and conscientious service. Our goal is get you the best home mortgage for your needs with the best interest rate and terms. From first-time homebuyer loan programs to home equity lines of credit (HELOCs), we offer a wide variety of home mortgages to meet your needs. We can’t wait to help you have the home of your dreams. Contact our mortgage brokers today!
Benefits of Home Appraisal
- Providing assurances that the home is not over-valued
- Justifying the amount of the mortgage loan
- Qualifying you for certain mortgage terms
- Evaluating home equity to remove Private Mortgage Insurance (PMI)
- Protecting against negative home equity
- Aiding tax and estate planning
- Helping determine insurance valuations
- Determining the feasibility of home improvements, refinancing, or additional financing
What Home Appraisers are Looking For
Your home appraisal report will include photographs, comparable sales, public tax records, and more. Be advised that appraisers do make mistakes, and you can get a second opinion or request another appraisal. Having a top-rated mortgage broker in your corner can most definitely help ensure that the value of your home is accurate. Call Fox Valley Mutual and Lisa Marie Schwartz in Evergreen for more information today!
- The location of your home
- The condition of your home, including its foundations, structure, roof, etc.
- The age of your home
- The neighborhood
- The layout of your home
- The square footage of your home
- Any amenities, such as swimming pool, deck, gazebo, etc.
- Home improvements
- Upgrades and remodels
- Inherent hazards of your home, such as if it’s in a flood plain
- Comparable houses
- Sales trends
The Importance of Home Appraisal
Market values fluctuate over time and also vary from neighborhood to neighborhood, causing home appraisals to become outdated. Lenders will require a new house appraisal if any refinancing is done, and tax assessors generally re-assess property annually. The value established by your bank loan appraisal will not change the assessment set for property taxes as county tax assessors do their own property evaluations.
In either case, the home buyer should monitor the home appraisals for fair treatment in relation to similar houses in the surrounding area and in view of the standards set for appraisers by state licensing boards. For tax purposes, there is often a protest deadline. In the case of a mortgage loan, the buyer should be comfortable with the home appraisal before committing to a firm offer and before the home loan closes. Any concerns or complaints should be brought to the attention of the lender or the state regulatory board.