in 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 particular property. When it comes to closing a financial transaction involving a property, both the seller and the buyer depend on their 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 items such as the plumbing or the air conditioning system in a more detailed manner. The bank requires the appraisal report, which is included in the mortgage costs. 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 you pay the amount you owe to the lender before the due term. To do so, it’s important to understand some of the most popular methods.
Some people decide to pay a monthly sum above the mortgage
81
Powered by FlippingBook