Your Home Appraisal And Your Mortgage

Your Home Appraisal And Your Mortgage

When buying a home, there are certain steps a buyer should go through before the home sale is official. First the buyer makes the offer, then the offer is accepted.

Next the buyer schedules the inspection and home appraisal. Finally, everyone is ready for closing.

It’s easy to overlook the impact of some of these steps, but when it comes to a mortgage, the home appraisal is actually quite important. Banks want to see that they are lending money for an investment that is worthwhile, so that appraisal is a crucial step to getting financing. Here is what buyers need to know about how the appraisal could affect their mortgages.

Understanding The Home Appraisal Process

The home appraisal gives a home valuation expert the chance to evaluate the home a buyer’s considering to determine its market value. Home appraisers are highly trained, state-licensed professionals that know how to evaluate homes and assign value to them.

The appraiser will use various approaches to determine the final appraised value. The appraisal typically happens after an offer on the home was approved but before the lender loans the money.

The Appraisal And Mortgage Approval

The appraisal is one factor that a mortgage lender considers when deciding whether or not to approve a final loan request. Even if a borrower had preapproval, a low appraisal could cause the mortgage to fall through.

Why is this? A lender only wants to lend enough to cover what the home’s actual value, and if the appraisal comes in lower than what the borrower is asking for, the lender can deny the loan.

If the lender does not deny the loan completely, they may refuse to lend more than the home’s value. In order to buy the home at the agreed price, the buyer may need to come up with the difference in cash at closing.

What Can Buyers Do If The Appraisal Is Low?

If an appraisal comes in low on the home someone wishes to buy, the buyer shouldn’t panic. It is possible to get a new appraisal at a higher value.

First, consider the condition of the home. Did the seller let some things fall into disrepair? If the seller fixes those items, a new appraisal may be higher.

Does the home look rundown or cluttered? This shouldn’t affect the appraisal, but it can sometimes cause the appraiser to trend lower. Sometimes, simply asking for a second opinion might get a slightly different appraised value.  That said, if the appraisal is low, make sure to evaluate the purchase price. Is it in line with current market conditions and the overall condition of the home?

If the answer to that question is no, then the offer may be too much for the home. The appraisal, in this case, gives the buyer the opportunity to reevaluate the purchase decision.

When it comes to mortgage approval, the appraisal is one of the critical steps in the process. If a buyer has shopped wisely, the home should pass with flying colors, and soon the home sale process will be over.  As always, your trusted mortgage professional is the best resource for appraisal information in your local market.

Buying A Foreclosure: 5 Things To Know

Buying A Foreclosure: 5 Things To Know

Buying a property out of foreclosure can be a very smart move, financially. But it can also be complicated, expensive, and stressful.

Here are 5 things to keep in mind before you take a first step in that direction:

Cash Or Preapproval Required

Buying a house that has been returned to the lender through foreclosure means dealing with bureaucracy rather than with a motivated seller. Large lenders are notorious for taking their time to approve a contract, even if the offer is for the exact amount specified.

Then there’s the paperwork, which can seem endless. Most lenders require that prospective buyers have cash on hand, or a pre-authorized loan in place in order to even submit an offer. 

There’s Little Room For Negotiation

Although in certain circumstances there may be an opportunity for some discussion about the price, that is not the norm in a foreclosure. The minimum price is usually written in stone, even during an on-site property auction, and the only direction is up! The days of buying foreclosures for a song are long past, if indeed they ever really existed. 

As-Is Condition Means Just That

Some buyers specialize in foreclosures while other investors run the other direction. There are pros and cons, of course, to every transaction. Sage advice is to always pay the fee for a property inspection on a foreclosed property, even if you have experience. A third-party evaluation is especially valuable if the home has been vacant for an extended period of time, if the utilities have been turned off, or if there are extensive visible defects.

Foreclosures can be like icebergs: What you see may be nothing compared to what lies below the surface. Also, with the findings in writing, always confirm that your loan commitment and insurance quotes will be honored in spite of the existing condition.

The Need For An Experienced REALTOR

Navigating the landscape of property foreclosures is a specialty field, and caution is the name of the game. As a prospective buyer of a pre-foreclosure, a short-sale or a foreclosed home, an experienced REALTOR is your best resource. A real estate professional will help you deal with all timelines and requirements, and has the knowledge and expertise to recommend lenders, inspectors, insurance agents and contractors to help you make a decision.

Always Consider Future Value

Although the initial price might be right, there are additional variables at play in every real estate transaction. What can you expect in terms of appreciation over the short term? What is the long-term outlook for the neighborhood? Will needed repairs and improvements add to the home’s value, or simply bring its condition up to standard? Do you plan to live in the home, or is it strictly for resale?

Your trusted real estate professional is the best resource to help you thoroughly evaluate all the information about every foreclosure.

Mortgage Delinquencies Slow As Economy Gains Steam

Mortgage Delinquencies Slow As Economy Gains Steam

Although 2017 was a difficult year for some coastal communities, mortgage delinquencies continue to decline as the economy ramps up.

Although hurricanes devastated properties in Florida, the Panhandle and south Texas, a thriving national economy continues to buoy American homeownership, according to a CoreLogic Loan Performance Insights Report.

Mortgage Delinquencies Decline Despite Severe Weather 

“Last year’s hurricanes continue to have an effect on loan performance in affected markets, showing up in statewide data. Serious delinquency rates in February were 50 percent higher than in August 2017 in Texas, and nearly double in Florida, even though the wind and flood damage was primarily in coastal markets,” Frank Nothaft, chief economist for CoreLogic, reportedly stated in a press release.

While the catastrophes such as hurricanes Irma and Harvey profoundly impacted coastal communities and put an onerous drag on delinquency rates, national numbers continue to trend in a positive fashion.

During February of 2018, only about 4.8 percent of U.S. mortgages entered some stage of delinquency. That was a surprising 0.2 decline from the previous year. In turn, foreclosure inventory rates declined from 0.8 to 0.6 percent and foreclosure inventory has enjoyed its lowest levels in approximately 10 years.

“At the same time, our CoreLogic U.S. Home Price Index showed a 6.4 percent increase in home-price appreciation for the 12 months, which ended in February 2018. These factors bode well for the fortunes of both homeowners and mortgage servicers,” economist Nothaft reportedly stated.

GDP Points To Economic Uptick

One of the driving forces behind a thriving real estate market is the growth or slippage of the Gross Domestic Product (GDP).

According to data released by the Bureau of Economic Analysis, the country appears to be on a economic tear with the 2017 and early 2018 numbers far outpacing 2016. The quarterly reports over the last 12 months showed the GDP topping 3 percent twice, 2.9 once and we’re waiting for definitive markers for first-quarter 2018, but they appear strong.

It’s reasonably safe to say that economic prosperity generally has a positive effect on homeownership because it often reflects growing corporate profits, potentially rising wages, job security and low unemployment.

The unemployment rate has widely been reported as hitting 17-year lows and African-American and Hispanic unemployment are said to be at historic lows. While these measures may not have a direct and discernable correlation to everyday people being able to afford their mortgages, they do point to overall economic prosperity. Couple these economic trends with expected federal tax savings and foreclosure rates could continue to drop.

Although no one can make assurances about the future of the economy, these are positive indicators for people thinking about purchasing a home.

4246 Coffee Rd Boston GA 31626

4246 Coffee Rd Boston GA 31626

FOR SALE

4246 Coffee Rd

MLS# : 912780
Boston, GA 31626
Utilities: 4246
1,536 SQ FT 1 ACRES
$59,955
Features:
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Bobby Brown

Bobby Brown

Cell: (229) 221-3016
Email: brown@ftrealty.com

Description

Well kept Sturdy block 1500 sf church on 1 acre with well., piano, 16 wood pews and pulpit. 1/2 bath and two offices. Handicap accessible .... sellers are licensed GA realtors #365123 and #173188.... Could be converted to residential home. Nice country setting.

Courtesy of Rose City Realty, Inc.
Information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the Thomasville Area Board of REALTORS Multiple Listing Service (MLS). 1590/3354

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4246 Coffee Rd Boston GA 31626

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1207 Evergreen Drive

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428 Colton Ave

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222 Gordon Ave Thomasville GA 31792

222 Gordon Ave Thomasville GA 31792

FOR SALE

222 Gordon Ave

MLS# : 912779
Thomasville, GA 31792
Utilities: 222
10,000 SQ FT 0.66 ACRES
$499,000
Features: Downtown Area, High Traffic Area, High Visibility
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Dayna Hardy

Dayna Hardy

Cell: (229) 221-6989
Email: dhardy@ftrealty.com

Description

Commercial building in a prime location. Downstairs you will find a banquet hall with bar, public bathrooms, commercial kitchen with walk in cooler and lots of storage. Upstairs has office space and a conference room. Unique opportunity for an investor.

Courtesy of KeySouth Real Estate Group, Inc
Information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the Thomasville Area Board of REALTORS Multiple Listing Service (MLS). 1590/3354

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222 Gordon Ave Thomasville GA 31792

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428 Colton Ave

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1408 Gordon Avenue

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800 Jackson Thomasville GA 31792

800 Jackson Thomasville GA 31792

FOR SALE

800 Jackson

MLS# : 912723
Thomasville, GA 31792
Utilities: 800
9,076 SQ FT 1.07 ACRES
$450,000
Features: Downtown Area, High Traffic Area, High Visibility
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Bobby Brown

Bobby Brown

Cell: (229) 221-3016
Email: brown@ftrealty.com

Description

Over 9000sqft commercial building hosts over 20 offices, kitchen area, conference, class, and storage rooms. Building is 75% renovated and can be easily reconfigured to meet anyone's needs. New roof, AC unit, electrical and sheetrock. Many uses from event center, private school, church, restaurant, store, Live-work, ect. One acre lot with fencing, two metal storage buildings, asphalt paving, concrete walks and covered front walk. This site contains approximately 1.07 acres on level lot with adequate drainage and easy ingress and egress from street. Located on main state road that runs through the heart of the city. 2016 appraisal on file for $1.2 million.

Courtesy of KeySouth Real Estate Group, Inc
Information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the Thomasville Area Board of REALTORS Multiple Listing Service (MLS). 1590/3354

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800 Jackson Thomasville GA 31792

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87 Ells Creek Drive

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308 Fontaine Drive

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402&404 Colton Ave. Thomasville GA 31792

402&404 Colton Ave. Thomasville GA 31792

FOR SALE

402&404 Colton Ave.

MLS# : 912639
Thomasville, GA 31792
Utilities: 402&404
2,820 SQ FT 0.3 ACRES
$89,500
Features: Corner Lot
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Carey Sewell

Carey Sewell

Cell: (229) 226-6515
Email: csewell@ftrealty.com

Description

Need more space? This is the building for you! This building offers plenty of office space, a kitchen and lots of storage space. There is also an extra living quarters on the property. Call today!

Courtesy of Rose City Realty, Inc.
Information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the Thomasville Area Board of REALTORS Multiple Listing Service (MLS). 1590/3354

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402&404 Colton Ave. Thomasville GA 31792

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311 Clermont Drive

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1835 Smith Avenue Thomasville GA 31792

1835 Smith Avenue Thomasville GA 31792

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1835 Smith Avenue

MLS# : 912633
Thomasville, GA 31792
Utilities: 1835
3,692 SQ FT 2 ACRES
$495,000
Features: Corner Lot, Historic, Underground Utilities, High Traffic Area, High Visibility
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Susan Bennett

Susan Bennett

Cell: (229) 977-3368
Email: susan@ftrealty.com

Description

Prime, high traffic immaculate property with 2.01 acres (2 tracts) covers an entire city block. Rating is C-1A limited business district and directly across from C-2 developments. The home is a 2 story, historic cedar featuring 3,692 sq. ft. The additional recently renovated building is 24 x 24. Both structures have a brand-new roof. An additional 20 x 18 outbuilding is included. There are options to separate the property into an acre for frontage and an acre in the back that can be split into 3 separate parcels for development This could be a VRBO, corporate rental, retail location, medical office, education facility or residential. There are too many options to list. Bring your clients with a vision to make an investment for the future.

Courtesy of Rose City Realty, Inc.
Information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the Thomasville Area Board of REALTORS Multiple Listing Service (MLS). 1590/3354

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1835 Smith Avenue Thomasville GA 31792

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250 Longwood Drive

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111 N Broad Street #207

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517 Remington Avenue

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736  Jackson Street Thomasville GA 31792

736 Jackson Street Thomasville GA 31792

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736 Jackson Street

MLS# : 912624
Thomasville, GA 31792
Utilities: 736
640 SQ FT 0.22 ACRES
$20,500
Features: High Visibility
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Bobby Brown

Bobby Brown

Cell: (229) 221-3016
Email: brown@ftrealty.com

Description

Subject property has an old shot gun house situated on the property which is sold as is. Seller nor agent makes any warranties or guarantees as to the condition of the improvements. Frame home is in poor condition

Courtesy of Darby Realty Services
Information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the Thomasville Area Board of REALTORS Multiple Listing Service (MLS). 1590/3354

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736 Jackson Street Thomasville GA 31792

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225 Gatlin Bluff Road

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216 E Monroe Street

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47 Vicky Lane

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