APPRAISALS
Michael Holigan: Once you've selected the home you want to buy the lender has to take one important step, which is ordering the appraisal. The appraisal ensures the lender that the home is actually worth the amount of money they're loaning to the buyers for the mortgage. It also lets the buyers know they're getting what they're paying for. On a new home like this one the appraiser will take measurements and calculate the square footage. City inspectors have just checked out the rest. On an older home there's more scrutiny.
Debbie Taylor: On older homes you look for slab cracks, brick cracks, rotted wood, roofing problems, plumbing problems, whether all the plumbing works properly.
MH: On both existing and new homes the appraiser will compare the price of the home with recent sales prices of other similar homes in the neighborhood. They'll also consider any special feature in the home which would add to its value. The appraisal process will cost $325.00 for an FHA or conventional loan. It's just a little higher for a VA loan. After the appraisal's done, the appraiser packages it up and sends it to your mortgage lender where they add it on to your closing cost.
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Episode 62 1997 - 98 Season
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