5 Appraisal Questions Answered

1. Does the appraiser know the price stated in the sales contract?

Yes, the appraiser is always supplied with the sales contract which lists the Buyers, Sellers, sales price and any sales concessions or special amendments to the contract. An appraiser must have a contract that is signed and dated by both parties before he can submit his appraisal report.

2. Will the appraised value of a property vary depending on whether the appraisal is conducted for the buyer or the seller? 

The appraiser must conduct an objective, independent service where he has no vested interest in the outcome of the appraised value.

3. Do real estate appraisers use a formula, such as a specific price per sq. ft., to figure the value of a home?

Price per square foot is only one of the many items considered. Appraisers make a detailed analysis of all factors pertaining to the value of the home including location, size, style of home, quality, condition and proximity to local facilities. The most recent comparable sales, however, play the largest part in determining a property’s estimate of market value.

4. Is an appraisal the same as a home inspection?

An appraisal does not serve the same purpose as a home inspection. The appraiser forms an opinion of value during the appraisal process and in the resulting report. A home inspector determines the condition of the home and all its major components and reports on these findings.

5. What happens if the appraisal price is higher than contract price?

Congratulations! This means that your home is actually worth more than what you’re paying for it! And don’t worry – there should be no more price negotiations with the seller. Sometimes buyers worry that the seller will find out and want to renegotiate the price for a higher amount. However, you’re paying for the report, so there’s no reason to ever share the results with the seller in the instance that you get a higher appraisal price than expected.

This blog post courtesy of:

Norman Hubbard & Associates Nationwide Appraisers 

(888) 712-2217

690 North Broadway, Suite 102

White Plains, NY 10603

neworders@normanhubbard.com

Thou Shalt Not Have Disputes When Applying For A Mortgage

 

 

The mortgage rules and guidelines are fluid and changing frequently.  But in general a disputed credit item other than a medical collection must be removed/corrected.

My clients have had 100% success removing disputes following these procedures.

Experian

475 Anton Blvd. Costa Mesa, CA 92626 714-830-7000 is answered by a live human being, tell them you need the Executive Customer Service Team to end the dispute(s), hours are 8AM-5PM Pacific Time.

Equifax

1550 Peachtree St, NW Atlanta, GA 30309 404-885-8300 is answered by a live human being, tell them you need to speak with someone in the Executive Consumer Service department.

TransUnion

555 W Adams St Chicago, IL 60661

312-985-2000 it has a machine greeting but just stay on the line and you are transferred to a live person, tell them you need to speak with someone in the Special Handling Department(or that you need help removing dispute comments), you’ll have to wait a little bit as they need to connect to customer service then get it elevated to the Special Handling Department (it is hit or miss, TransUnion often proves to be the most challenging)

If you cannot get the Special Handling Department, then when contacting the normal customer service reps you should say:

I need to dispute the compliance condition remarks code of “AID” (Account In Dispute) because I am no longer disputing the account. (but you don’t need to open a dispute, you need this handled while you are on the phone call)

The customer service rep should be able to immediately end the dispute, as in during the phone call.

There are some situations that dispute comments cannot be ended by the consumer, and must be ended by the creditor, such as if there are multiple disputes on the same trade line. Remember to always be patient with the customer service reps, as they are trying to help you but may have limited communication skills depending on where the customer service call center is based.  If there are confusing terms being used, don’t be afraid to admit you do not understand what they are saying and ask for them to re-explain or to transfer you to someone in the U.S.

 

What’s Ahead For Mortgage Rates This Week – March 3, 2014

Weekly Update:       

Are you searching for your next home? Picking the perfect neighborhood is as important as       finding the perfect house. But how do you do this? Here are some ways to start:

Profile The Neighborhood – Seeing the neighborhood during dusk can be very different from mid-morning. Visit the neighborhood at various hours of the day to get a full idea of what it would be like to live there. Be sure to visit on weekdays and weekends.

Assess the Location – Do you like the location of the neighborhood? What will your commute be like? That’s an important thing to factor in: how much time you will be on the road, and how much you will be spending in gas. Are shops/grocery stores/restaurants/interstates located nearby?

Talk To Neighbors – Another good tip is to chat with neighbors. This gives you a first hand idea to how people feel about living there.

That’s all for this week…keep an eye out next week to see how the markets faired and how it affects you.

Rounding Up Your Mortgage Payment, Will It Really Help?

Paying off the mortgage on your home as quickly as possible will ensure that you pay less interest and save money in the long term. But how can you accelerate those payments so that you own your home sooner?

One simple and easy way that you can pay off your mortgage faster is to round up your mortgage payment to the nearest $100 interval. So, for example, if your mortgage payment is $756 per month, you can pay $800 instead.

Not only will this help you to pay off your mortgage sooner, but round numbers are also much easier to handle for simple calculations. You will be able to look at your bank account and easily subtract your mortgage payment in your head to get an idea of where your money stands.

Will This Really Make a Difference? 

By rounding up your mortgage payment, you won’t notice the difference in your day to day expenses but you will really notice the difference when it comes to the overall lifespan of your mortgage.

In your monthly budget, you will have already mentally allocated your mortgage payment as $800, so having that $44 less per month won’t make much difference and you can easily adjust. It is an amount that is small enough that you won’t “miss” it.

However, paying $44 extra per month will add up to $528 per year. That’s almost like making an extra payment every year. This extra money will go straight into the principal of the loan, which will make your interest payments go down every year faster and faster.

Over the years, this will compound and will mean that you actually end up reducing your mortgage term by a few years. The savings that you can enjoy over the total life of the loan can be in the thousands!

There are many other ways that you can pay down your mortgage faster, such as contributing a lump sum payment or switching to bi-weekly payments. However, it is interesting to know that just rounding up your payment can make such a significant difference!

For more information about the mortgage on your home, contact me.