An informational source for people who are relocating, with a particular focus on moving to the Carlsbad area of North County San Diego (and nearby coastal communities), with advice, guidance and true stories to help you on your way and make it a great journey, from a REALTOR� with plenty of personal (4 major moves, most recently from Boston to Carlsbad, California) and professional relocation experience. Are you running into problems selling your home? Need to find a new one quickly? Never moved before and haven't a clue? You'll find some great tips on how to solve your relocation issues here. Or ask me a question any time and I'll share some solutions or tell you where to get more information.
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If you are buying a new home, or are a seller who has a buyer who is purchasing your home, and it will be financed by a bank, watch out for that appraisal.
Why do I raise a red flag?
BUYERS:
Well, as a buyer, the home you are purchasing must appraise at an amount that meets the underwriter's requirements for the loan amount. They won't loan you $500,000 for a home that appraises at $475,000. Not good business for the bank. So this is a critical step.
Secondly, the timing is important here. The appraisal MUST be reviewed by the underwriter in order to review it and then approve the loan. That can take a day or two, or more. So if the appraisal itself is delayed in getting to the bank this may hold up the loan approval process.
Make sure you talk with your lender and that they order the appraisal as soon as you have a signed purchase agreement. It may take a few days for the appraiser to schedule the appointment, and then several days more before the actual appraisal is sent to the bank. You will have to bird-dog this process, as will your agent, to keep things moving along.
SELLERS:
The appraisal is critical for you as well. Obviously if the home does not appraise the buyer will not get a loan and will not go to closing. Bad for you. Herein lies the risk of selling a home at over market value - the bank will wonder about loaning $500,000 when comparable homes are selling at $475,000.
The timing for you is important too, for obvious reasons. While it is not your responsibility directly you have a vested interest in things moving along. So, your agent may want to keep tabs on what is happening at the buyer's end so the appraisal get scheduled promptly. And since it is likely your listing agent may need to let the appraiser in, you don't want any delays.
Jeff with the mortgage market mess the home appraisal now has become a much more critical step in getting to the closing table. The appraisers here in Massachusetts have really become a whole lot more conservative. They are actually doing their job instead of letting every home appraise. There have been more than a few that should never have passed and did.
Posted by Grafton MA Homes at 2:45 PM, Feb. 28, 2008
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If you are buying a new home, or are a seller who has a buyer who is purchasing your home, and it will be financed by a bank, watch out for that appraisal.
