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Home Appraisal
To acquire a home mortgage, all mortgage lenders
such as banks, credit unions, mortgage brokers,
mortgage bankers, or other financial institutions
will require a home appraisal be done. This is an estimate of the fair market
value of a home which includes the age, condition, size, amenities, view, and
the all-important factor of location to schools, shopping, hospitals and even
on the local economy.
Home appraisers assess the condition of a property and assign a price value
to the property. They may one of any number of real estate appraisal professionals.
In Massachusetts, there are over 4,000
licensed real estate appraisers, some of which are certified for residential home
appraisal. Ensure your home appraiser is licensed for residential units. In the
State of New Hampshire the New Hampshire
Real Estate Appraiser Board governs the practice of residential home appraisal.
Many home appraisers, like property tax assessors simply look at the values
assigned generally to a typical type of house on particular street. The values
are generalized, but you can discuss it with the appraiser or dispute that value.
There may be a difference in the value a house and property are assessed at
and what its really worth. This unfortunate situation comes when the secondary
mortgage market has an interest in seeing higher value for homes. There have been
reports of home appraisers giving inflated values on homes to meet the needs of
secondary mortgage market investment
companies. That would inflate the values of the homes and result in inflated mortgage
costs, or perhaps the rejection of a home mortgage application or require further
down payment.
So whether you’re needing a first time home home loan or you’re
considering a mortgage refinancing, a home appraisal needs to be done on your
property. Nothing affects your "home
equity" more than an appraisal. Don’t assume this evaluation is
100% accurate and ensure the home appraiser is aware of important factors that
they might otherwise know about. Always be proactive when you’re applying
for your home mortgage.
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