AFY Kim Blue - Home Buyers Guide V1 - 3020

dealing with a reputable company and knowing all the details.

GETTING AN APPRAISAL DIFFERS FROM THE EVALUATION BY A PROPERTY INSPECTOR

A real estate appraiser is a state-licensed expert who determines the value of a certain property. When it comes to closing a financial transaction involving a property, both the seller and the buyer depend on his or her evaluation. This procedure is meant to protect the buyer, as well as 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 obvious issues, while the latter checks in a more detailed manner items like the plumbing, or the air conditioning system. The appraisal report is required by the bank, and the cost is included in the mortgage cost. The appraisal expert evaluates the property using one of these two methods: sale comparison approach, by comparing your home with other similar ones that were sold in the area, or the cost approach, used mainly for new buildings — a method that 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. By doing so, you can reduce the costs incurred together with interest and save thousands of dollars in the long term. To prepay the mortgage means that you pay the amount you owe to the lender before due term. To do so, it’s important to understand some of the most popular methods of doing this.

Some people decide to pay a monthly sum above the mortgage

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