Mortgage Process Step #2

Appraisal

Understanding Residential

Real Estate Appraisals

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.

Mortgage Loan Process

Step 1: Loan Application & Documentation

Step 2: Review

Step 3: Preapproval

Step 4: Accepted Offer

Step 5: Finalizing Your Application

Step 6: Appraisal

Step 7: Underwriting

Step 8: Clear To Close

Step 9: Wire Funds For Closing

Step 10: Final Closing Disclosure

Step 11: Closing

Please feel free to contact us at any time if you have any questions about your loan status or next steps in the process.

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.

Ready to learn more?

Review the previous step in the mortgage process.

Documentation Stage

Learn about the next step in the mortgage process.

Underwriting Stage

Quick Mortgage Calculator

Purchase price

Please enter here the amount you expect to pay for a home.

Down payment

Down payment is cash that you pay upfront for your home.

Term in years

Number of years you have to pay.

year(s)

Interest rate (per year)

The percentage of interest that you will pay on your mortgage for a specific term.

Property Tax

Enter your property tax here if you know it.

per year

Home Insurance

Most lenders require home insurance. Enter its price here.

per year

PMI

PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.

Calculate

Mortgage Calculator is for demonstration purposes only and may not reflect actual numbers for your mortgage. Please contact us and we will walk you through the best possible mortgage scenario for your specific needs.

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