Friday, February 17, 2017

What Goes Into A Residential Real Estate Appraisal Philadelphia PA Bankers Require

By Edward Anderson

When someone is in the market for a new home, there are lot of details to take into consideration and decisions to make. After you have toured a number of properties and decided on one, you will have to make an offer to the seller. Hopefully, you have already contacted a financial institution and gotten preliminary approval for a loan. In Pennsylvania, before you can finalize your mortgage and close on the property, the banker will probably require a residential real estate appraisal Philadelphia PA lenders can approve.

Inexperienced buyers don't always believe a property assessment is necessary. They may be familiar with the house they are interested in and know the history of the place. They might be purchasing a brand new house that shouldn't have problems. Your lender has to answer to supervisors, regulators, and board members who will want to know money is being wisely allocated. If a mortgage broker approves a bad loan, there will be asked serious questions asked.

Most people have some understanding of what an appraiser does, but many are not sure how he or she goes about it or what kind of education and experience they have. First time home buyers are often nervous about what value the appraiser will put on the property they want to buy. If it is too low, the mortgage lender may not approve the final sale price, forcing them to find additional funding somewhere else.

Appraisers who have the approval of banks and other mortgage lenders are licensed and certified. Most are very experienced, and many have advanced degrees in their field. All appraisers must follow the appropriate association rules and regulations.

A lot of inexperienced home buyers don't understand where and how the appraisers get the their information or the numbers that place value on a piece of property. Assessors approach this from several different angles. They physically inspect the property in question thoroughly. Once that is done, they research other recent and comparable sales in the area to get a range of value.

Any documents you already have pertaining to the property, like tax bills and surveys will help the appraiser put an accurate value on your house. If you have applied to refinance your existing mortgage and have remodeled or improved your house in some way, you need to give the assessor any documents showing the work you did and how much you paid for it.

The cost of property inspections vary depending on the complexity of each property and the amount of time it takes to find appropriate comparable sales. You, as the buyer or homeowner, are responsible for the cost, but the actual report will belong to the mortgage lender.

Getting a property evaluation can be nerve wracking because you want the value to reflect the price you are paying. Hopefully your assessment will be in line with the amount of money you need to borrow.

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