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Knowing Your Appraisals, What You May Not Have Known

June 24, 2013

Here at Reliance Fist Capital we understand the importance of the appraisal process. We also know that appraisals are a key element in the mortgage process and can also be used for property tax assessments. And the value assigned by the appraiser has a direct impact on a mortgage and your taxes. Here are some tips to understanding your appraisal:

 

What is an appraisal? An appraisal is an objective value assessment of a property. A qualified appraiser will evaluate the home and assign a monetary value.

What factors influence the appraised value of a home? Geography, desirability of the neighborhood, local housing market, number of homes on the market, similar homes’ sale prices, condition of the home, number of bedrooms and bathrooms, necessary repairs or upgrades, amenities, and curb appeal are all considerations.

What will be in your appraisal report? Appraisers use standardized forms that include legal descriptions of the property, neighborhood and lot information, materials used for construction, and a grid analysis that compares the property to other similar homes recently sold.

Who chooses the appraiser? When a homeowner is looking for a mortgage, either purchase or refinance, neither the homeowner nor the lender may select the appraiser. Rather, an independent 3rd party appraisal management company (AMC) is responsible for coordinating and selecting an appraiser.

Who pays for an appraisal? The owner of the home pays for an appraisal as they are the party looking to either sell their home or get a mortgage. Appraisals are non-refundable, regardless of the outcome of a sale or loan application. Lenders such as Reliance First Capital may help a homeowner arrange/schedule an appraisal, but the appraisal management company charges the homeowner for the appraisal. Lending companies do not receive any money for appraisals.

 

Reliance First Capital specializes in helping customers reach their individual needs with the best loan options. Reliance First Capital can help find the loan option to meet your unique lifestyle and financial goals. Learn more by contacting Reliance First Capital today at 866-735-9004 or visit us online at www.reliancefirstcapital.com.

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