An appraisal is an required component of the home refinance approval process
If you are shopping for a colorado refinance loans
to refinance a home or purchase your current mortgage, you may already
know that a home appraisal is almost always required before a loan can
be approved for a florida mortgage rates
. However, if you are like many other borrowers, you might not know about appraisals or why theyâ€™re are so required.
Appraisals have been a hot topic in recent months due to new rules that
have changed how servicers and loan lenders orders appraisals for
certain types of loans. The rules are spelled out in the Home Valuation
Code of Conduct (HVCC), which became effective May 1, 2009.
What is an appraisal?
A real estate appraisal is an opinion of a propertyâ€™s value prepared by
a licensed real estate appraiser. Each home is unique, so the appraiser
must rely on his experience together with the facts gathered about the
neighborhood such as property sales prices of other comparable home to
determine the value of a real estate. Appraisal are meant to be
unbiased and free from the influence of anyoneâ€™s opinion of the homeâ€™s
value. The new rules have placed greater restrictions on attempts to
unduly influence appraisers.
Who pays for the appraisal?
Borrowers pay for a home appraisal upfront since the appraisal must be
completed before the banks will approve the mortgage. Under the new
HVCC rules, borrowers who switch to a different banks during the
mortgage process, as sometimes happens, will most likely have to pay
for another appraisal to satisfy the new loan providers approval
requirements. Even though the borrower pays the appraiserâ€™s fee through
the servicers, the appraiser typically is not an employee of the
lenders. The main purpose of an appraisal is to help the lender assess
the value of the property and decide whether to approve the loan.
Thatâ€™s why a new appraisal typically is required for a loan refinance
as well as a home refinance.
Is an appraisal the same as a home inspection?
Another common misconception is that a home purchase appraisal is the
same as a home inspection. Appraisers do consider the condition of the
home and may note any major problems.
First Choice Mortgage Companyâ€™s is committed to be a information
resource for the Colorado mortgage consumer and a full range of
mortgage tools can be found on our website
www.FirstChoiceMortgageCoLLC.com. We pride ourselves on being a
full-service mortgage broker where you get the advantage of experienced
loan professionals, great rates and a very wide range of mortgage
First Choice Mortgage Company has build its reputation on providing
outstanding service to its clients and the launch of
www.FirstChoiceMortgageCoLLC.Com is yet another example of the
companyâ€™s dedication to exceeding expectations.