Mortgage Process Step #2

Appraisal Stage

Understanding Residential

Real Estate Appraisals

A critical component to buying a home is the appraisal. An appraisal is a third-party professional evaluation of the value of a property that is used to help determine the amount of a loan.

In compliance with government regulation, appraisers hired for a mortgage transaction on a conforming loan are chosen from a pool of qualified appraisers at random. Neither the borrower nor lender have the flexibility of deciding which appraiser will inspect your home.

Appraisals 101

A few key components of an appraisal

  • The Site: Location, view, topography, lot size, utilities, zoning, external factors, highest and best use, landscaping features…

  • Design: Quality of construction, finish work, fixed appliances, and any defining features…

  • Condition: Age, deterioration, renovations, upgrades, added features…

  • Health and Safety: Structural integrity, code compliance…

  • Size: Above grade and below grade improvements…

  • Neighborhood: Is the property comparable to others in the neighborhood?

  • Functional

  • Utility: Is the property functional as built – style and use?

  • Parking: Garages, carports, shops, etc..

Other Factors in Determining Value:

Curb appeal, lot size, and conforming to the neighborhood are obvious to the appraiser when they drive down into the neighborhood and pull up in front of your home.

Learn about the next step in the mortgage process.

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NOTICE OF EXPIRATION OF THE TEMPORARY FULL FDIC INSURANCE COVERAGE FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC).

Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution,

including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category. For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit: https://www.fdic.gov/deposit.


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