GETTING AN APPRAISAL DIFFERS FR IFFERS FROM THE EVALUATION BY A PROPERTY INSPECTOR
A real estate appraiser is a state-licensed expert who determines the value of a particular property. When closing a financial transaction involving a property, the seller and the buyer depend on their evaluation. This procedure is meant to protect the buyer and the bank that offers the mortgage loan from purchasing an overestimated and overpriced piece of real estate. Property appraisers aren’t the same as property inspectors. The difference between an appraiser and an inspector is that the former will look only for apparent issues, while the latter checks items such as the plumbing or the air conditioning system in more detail. The bank requires the appraisal report, and the cost is included in the mortgage cost. The appraisal expert evaluates the property using one of two methods: the sale comparison approach, which compares your home with similar ones that were sold in the area, or the cost approach, which is used mainly for new buildings and evaluates the cost of replacing the structure of the home.
VALUE OF PREPAYING YOUR MORTGAGE
It’s a great idea to prepay your mortgage if you can. Doing so can reduce the costs incurred together with interest and save thousands of dollars in the long term. To prepay the mortgage means paying the amount you owe to the lender before the due term. To do so, it’s essential to understand some of the most popular methods of doing this. Some people decide to pay a monthly sum above the mortgage payment. This amount gets applied to the principal (not the
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