Why is an Appraisal Important When Buying or Selling a Home?
One the biggest components in buying a home when a lender is involved includes an appraisal. If you buy a home with cash and sometimes with a conventional loan, you can bypass this step. With an FHA loan and an VA loan, you cannot. What is an appraisal? In simple terms and Appraisal is a valuation of property. An appraisal ordered for the purchase of a home is to determine if the price agreed upon by seller and buyer is acceptable by the lending institution. If an appraisal comes in low, the lender will likely decline to fund the deal. Unless the buyer is willing to come to the contracted price the deal to purchase can fall apart. So what happens if the Appraisal come in Low? Sometimes a buyer will pay over the appraised value in order to buy the home. Sometimes the seller will lower the contracted price to the appraised value in order for the deal to continue. Sometimes the deal falls apart. Loan types will determine what you can do as a buyer to get past the low appraisal. A con
Great tips! I just moved into a pretty tight-knit condo community and I'm embarassed to say that I was shocked when everyone was so friendly and helpful. The first weeks, I swore I lost every utensil in my kitchen and I never once had to run out to the store to get something due to nice neighbors. Great tips!
ReplyDeleteI was just talking with my husband about this very issue tonight. We've lived in Seattle, the UK, the Southern USA, and are back in Seattle now. Seattle and the UK were/are very hard places to get to know our neighbors. There's definitely a wall and people keep to themselves. The South was amazing. It was the perfect environment for me. I'm the type of person who likes to say hello and smile to strangers and I enjoy idle chitchat. We're back in Seattle again, having settled in a Nordic neighborhood and I'm always trying to tone down my friendly personality as it's not receptive by our neighbors. Maybe the next place we buy in a few years will come with friendly, good people living on our street! Boy, do I miss the friendly people in the South.
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