Are you thinking about either purchasing a home, refinancing your mortgage, or selling your property? One crucial step for any of these transactions will be to get a home appraisal, but what exactly does that entail? A home appraisal is a thorough inspection of a property and it compares the value of your home to others in your location to determine the overall value of the home. Understanding the value of your home by getting an appraisal helps a home sale or a refinance go more smoothly. If you are interested in buying, selling, or refinancing a home in Mount Pleasant, South Carolina, Lucey Mortgage Corporation can help. Read on to learn more about the home appraisal process.
The Home Appraisal Process
When a home is appraised, a licensed, unbiased professional evaluates the value and condition of a property. A home appraisal takes place when a home is bought and sold or when a mortgage is refinanced. Lenders want to make sure that a borrower is able to afford their loan payments, and that they don’t overborrow money when buying a home, so the home serves as collateral for a mortgage. A home appraisal protects a lender from lending out more money than they may be able to recover because if a borrower cannot pay back the loan, a lender may need to sell the property in order to recuperate the lost funds.
Steps in a Home Appraisal
When a buyer’s offer has been accepted on a property and an agreement on a purchase has been signed, a lender will request a home appraisal. The borrower will be responsible for the cost of a home appraisal, and the cost typically is between $100 to $200. When this is completed, an appraiser will evaluate both the interior and exterior of a property, and identify any potential issues such as safety or electrical issues to determine the home’s worth. Additionally, an inspector will look at other factors including the number of rooms and bathrooms the home has, the square footage of the property, its location and neighborhood demographics, etc. to help determine the home’s value. Once the inspection is finished, the inspector will create a report detailing the condition of the property. The borrower will be able to review the report, and if the report is close to the amount of the buyer’s offer, the loan can be processed. A borrower has the opportunity to order another appraisal and have the lender reevaluate the report if the appraised value is less than the anticipated amount.
Home Appraisal Assistance in South Carolina
If you are buying, refinancing, or selling your home in Mount Pleasant, South Carolina, and need assistance understanding the home appraisal process, contact Lucey Mortgage Corporation today for a consultation.