Both homeowners who are selling their home and potential buyers are often confused by the home appraisal process.
Sellers often feel that their home is worth a certain amount especially if they upgraded their home, made improvements or added amenities. On the other side of the process, a potential buyer may have found their dream home for X amount and wonder if the house is really worth that much.
These questions and concerns are at the heart of home appraisals.
At its core, an appraisal determines the value of taxable property or property that appreciates; such as fine jewelry, art, businesses and land. A home appraisal is simply the opinion of a state-licensed third-party professional whose expertise is in determining the value of the land and buildings or structures contained on the property.
In residential properties, the appraiser will usually compare the sales cost of other properties in the area. However, the appraiser will also evaluate the lot size, square footage of finished and unfinished spaces, condition of the property and features like a garage or fireplace.
When it comes to home improvements, it is important to remember that there is no set amount associated with upgrades. The appraised amount of any upgrade could very well be less than the cost the homeowner paid for the upgrade. Again, appraisers will look to other properties in the neighborhood with similar upgrades to determine the value.
For example, a homeowner may spend $25,000 on a swimming pool but if the local marketplace can only support a $10,000 pool, then that upgrade will be marked on the appraisal as $10,000. This is the reason why homeowners should choose their upgrades wisely.
Lenders determine appraisal guidelines in order to force appraisers to attach a fair market value on a home based on comparable sales. Comparisons are based on the most recent six months of market activity and often examine closed or pending sales of at least three similar properties. This process prevents appraisers from over-valuing the home in question; a practice that some believe contributed to the 2007 housing bubble. Recent Federal rules have been instituted to prevent lenders from having influence over the appraiser’s results by requiring non-interested third party services to select and communicate with the appraiser prior to its completion.
Although the home appraisal process protects the lender from unnecessary risk, it also protects the buyer from overpaying on a house.
If you have any additional questions about the home appraisal process, please call Stuart directly at 410.491.0200 or email at septstein@baybankmd.com.
Our customers save money and close their loans quickly because we employ the most advanced mortgage technology available.
Showing posts with label Maryland. Show all posts
Showing posts with label Maryland. Show all posts
Monday, August 5, 2013
Friday, January 18, 2013
Big News! The CDA Increased Its Down Payment Help to $6500!
Big News!! The CDA (Maryland Mortgage Program) now offers an additional $1500 in down payment assistance (DSELP) if a buyer is purchasing a short sale/foreclosure! This makes the total help you can receive $6500!!
Contact our office by phone, 410-491-0200, or email if you would like more information on this program.
Wednesday, May 2, 2012
Spring Housing Market Update for Baltimore Metropolitan Area
Written by Stuart Epstein
It’s hard to believe that we are into May already! I will say that I am happy to report that the first four months of 2012 have been one of the busiest that we have seen in a long time in the Baltimore area home buying market. We are up by 9% over 2011 for purchase mortgages, and an average purchase price of $200,000, compared to $187,000 for the same period last year. Many people are starting to realize that home prices may have hit their low point and interest rates could not be more attractive than right now. For example, the average rate on an FHA 30-year fixed rate loan right now is 3.5% and a Conventional 30-year fixed at 3.875%. Our refinances have more than doubled for the first four months of 2012 over 2011! This is mainly due to rates being at an all time low. Many are reducing the term from 30 years down to 15.
The majority of the new applications are 1st time homebuyers, who happen to be in the best position right now, given they have no house to sell as a contingency for buying. They also have the benefit of receiving 1st time homebuyer grants and incentives, such as the CDA loan with DSELP (Maryland Mortgage Program) and the FHLB grant.
We are also seeing more “step-up” buyers, those who are selling their current home and upgrading to a larger or superior home. Since inventories of sought after homes on the market seem to be shrinking, some sellers are finding it easier to get contracts on their houses in a couple months. Some areas are actually experiencing bidding wars again.
The mortgage qualifying and documentation standards have continued to get more and more restrictive, which can make for a stressful process when applying and taking out a loan these days. The good news is that qualified borrowers can still get a loan, and at historically low rates. It just may be a bit more painful getting to settlement.
I may sound like a broken record, but the key is having a good, reputable, local lender working for you to make the transaction as smooth as possible.
If you own a home and have not refinanced in the last year, make sure you check with your lender to see if it makes sense for you to refinance. There are several programs available to help: the FHA Streamline Refinance, the VA IRRRL Refinance and the Fannie Mae DU Refi Plus programs all have flexible guidelines to help those who may not have the equity normally required to get a lower rate. If you are not sure if it makes sense for you to refinance, or if you are not sure if you can, don’t hesitate to call (410.491.0200) or email us to do a free analysis.
Enjoy the beautiful spring weather!
It’s hard to believe that we are into May already! I will say that I am happy to report that the first four months of 2012 have been one of the busiest that we have seen in a long time in the Baltimore area home buying market. We are up by 9% over 2011 for purchase mortgages, and an average purchase price of $200,000, compared to $187,000 for the same period last year. Many people are starting to realize that home prices may have hit their low point and interest rates could not be more attractive than right now. For example, the average rate on an FHA 30-year fixed rate loan right now is 3.5% and a Conventional 30-year fixed at 3.875%. Our refinances have more than doubled for the first four months of 2012 over 2011! This is mainly due to rates being at an all time low. Many are reducing the term from 30 years down to 15.
The majority of the new applications are 1st time homebuyers, who happen to be in the best position right now, given they have no house to sell as a contingency for buying. They also have the benefit of receiving 1st time homebuyer grants and incentives, such as the CDA loan with DSELP (Maryland Mortgage Program) and the FHLB grant.
We are also seeing more “step-up” buyers, those who are selling their current home and upgrading to a larger or superior home. Since inventories of sought after homes on the market seem to be shrinking, some sellers are finding it easier to get contracts on their houses in a couple months. Some areas are actually experiencing bidding wars again.
The mortgage qualifying and documentation standards have continued to get more and more restrictive, which can make for a stressful process when applying and taking out a loan these days. The good news is that qualified borrowers can still get a loan, and at historically low rates. It just may be a bit more painful getting to settlement.
I may sound like a broken record, but the key is having a good, reputable, local lender working for you to make the transaction as smooth as possible.
If you own a home and have not refinanced in the last year, make sure you check with your lender to see if it makes sense for you to refinance. There are several programs available to help: the FHA Streamline Refinance, the VA IRRRL Refinance and the Fannie Mae DU Refi Plus programs all have flexible guidelines to help those who may not have the equity normally required to get a lower rate. If you are not sure if it makes sense for you to refinance, or if you are not sure if you can, don’t hesitate to call (410.491.0200) or email us to do a free analysis.
Enjoy the beautiful spring weather!
Monday, December 12, 2011
FHA 203(k) LOANS – BUY AND RENOVATE YOUR HOME ALL IN ONE EASY LOAN – WITH A GREAT RATE!
Suppose you find a house you absolutely love, but it needs an updated kitchen or bathroom, or just simply needs new carpet and paint…well no worries!
The 203(k) loan allows you to acquire the “fixer-upper” and make it your own. The 203(k) program is perfect for buying dated properties, foreclosures, or short sales that have been neglected or need some TLC.
There are two types of 203(k) loans – the regular 203(k) and the Streamline 203(k). The main difference between the two is dependent on the scope of the repairs/renovations and consultant requirements. If your scope of work exceeds $35,000 or includes items like mold remediation or major structural changes to the property, it requires a full 203(k). You will have licensed 203(k) consultant help you by providing a feasibility study, assist you in developing your scope of work for the property, and they will provide you with a budget and bid package so you can select a contractor and know what to expect from a cost standpoint. This is especially helpful for those who are not as experienced in doing home renovation projects. If your list of repairs/renovations is less than $35,000 and does not require a consultant, then the Streamline 203(k) simply requires you obtain estimates from licensed contractors and you are on your way!
If you have any questions about this wonderful program, please let me know. I have been processing 203(k) loans since 2003 and would love nothing more than to share my knowledge and experience with you, walk you through each step of the process and help you achieve your goal of buying and renovating a home to make it into the home of your dreams!
Don’t forget, we lend in Maryland, Pennsylvania, Virginia, West Virginia, and Delaware. All in-house local processing, underwriting, closing and funding. Your loan stays in our office from start to finish. Compare our rates with anyone out and see how competitive we are. Happy house hunting!
The 203(k) loan allows you to acquire the “fixer-upper” and make it your own. The 203(k) program is perfect for buying dated properties, foreclosures, or short sales that have been neglected or need some TLC.
There are two types of 203(k) loans – the regular 203(k) and the Streamline 203(k). The main difference between the two is dependent on the scope of the repairs/renovations and consultant requirements. If your scope of work exceeds $35,000 or includes items like mold remediation or major structural changes to the property, it requires a full 203(k). You will have licensed 203(k) consultant help you by providing a feasibility study, assist you in developing your scope of work for the property, and they will provide you with a budget and bid package so you can select a contractor and know what to expect from a cost standpoint. This is especially helpful for those who are not as experienced in doing home renovation projects. If your list of repairs/renovations is less than $35,000 and does not require a consultant, then the Streamline 203(k) simply requires you obtain estimates from licensed contractors and you are on your way!
If you have any questions about this wonderful program, please let me know. I have been processing 203(k) loans since 2003 and would love nothing more than to share my knowledge and experience with you, walk you through each step of the process and help you achieve your goal of buying and renovating a home to make it into the home of your dreams!
Don’t forget, we lend in Maryland, Pennsylvania, Virginia, West Virginia, and Delaware. All in-house local processing, underwriting, closing and funding. Your loan stays in our office from start to finish. Compare our rates with anyone out and see how competitive we are. Happy house hunting!
Tuesday, July 19, 2011
VA Loans - No Down Payment – No Monthly Mortgage Insurance
VA Loans in Maryland, Pennsylvania, and Virginia – No Down Payment – No Monthly Mortgage Insurance
Who is eligible for getting a VA loan?
The VA loan is available to veterans, active duty service members, and reservists. Your VA eligibility can be verified through VA directly or you can contact a VA Lender who can verify your eligibility for you.
Why use VA?
I am a VA Approved lender and work for a Baltimore based local community bank that has been around for over 100 years! We process, underwrite, close, and fund VA loans in-house. We know the local real estate market. We are VA experts.
If you are moving to the Maryland, Virginia, or Pennsylvania area and are part of the BRAC realignment, we have additional incentives for you as well. How about free money to pay for your closing costs? Ask us about the BRAC Homeownership Incentive.
Contact the Stuart Epstein team for more details….
Who is eligible for getting a VA loan?
The VA loan is available to veterans, active duty service members, and reservists. Your VA eligibility can be verified through VA directly or you can contact a VA Lender who can verify your eligibility for you.
Why use VA?
- VA is one of the only mortgage products left that allows NO DOWN PAYMENT – that’s right 100% financing
- There is no required Mortgage Insurance
- The credit qualifications are easier than FHA and Conventional
- Interest rates are GREAT
I am a VA Approved lender and work for a Baltimore based local community bank that has been around for over 100 years! We process, underwrite, close, and fund VA loans in-house. We know the local real estate market. We are VA experts.
If you are moving to the Maryland, Virginia, or Pennsylvania area and are part of the BRAC realignment, we have additional incentives for you as well. How about free money to pay for your closing costs? Ask us about the BRAC Homeownership Incentive.
Contact the Stuart Epstein team for more details….
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