02/02/2022
1. Property Valuation
This is the big one. Appraisals determine the value of your home and protect banks from lending out more money than what a home is worth. They also protect you, the borrower, from overpaying for a home. Before scheduling an appraisal, it’s a good idea to make sure your home is in tip-top shape. Make sure everything (smoke detectors, appliances, windows, etc.) is working properly.
2. Interest Rates
Interest rates are highly impacted by the value of your home, in addition to other factors such as credit scores and debt to income ratios. For example, if your appraisal comes back and shows that your home value went up, you may qualify for a better interest rate. I am, as an independent mortgage broker, able to guide you through finding a solution that’s best for your financial situation.
3. Closing Turn Times
Your loan cannot be closed until an appraisal is complete. If for some reason your appraisal gets canceled or delayed, your loan might not close within the timeframe you were expecting. It’s important to be flexible.
