BUYING YOUR NEW HOME
6
What is an Appraisal?
An appraisal is not a home inspection, it's an unbiased opinion of your home's value. If you are financing your purchase, your mortgage lender will require an appraisal. A home's appraisal value is influenced by recent sales of similar properties and by current market trends. The home’s amenities, the number of bedrooms and bathrooms, floor plan functionality, and square footage are also key factors in assessing the home’s value. The appraiser must do a complete visual inspection of the interior and exterior and note any conditions that adversely affect the property’s value, such as needed repairs.
Different Types of Appraisals
FHA loans require an Appraiser certificated and knowledgeable of the Federal Housing Authority's appraisal guidelines. VA Loans requires an Appraiser certificated and knowledgeable with the Dept of Veteran Affairs appraisal guidelines.
7
Close on Your Home
Be sure you talk to your mortgage banker to understand all the costs that will be involved with the closing so there are no surprises. A good rule of thumb for closing costs (those costs due at closing and outside your required down payment) is between 2.5%-3% or your home's sales price.
Closing on Your Home
Set time and place for your settlement
Transfer utilities
Closing costs will likely include (but are not limited to): Your down payment Points/Buydown on your interest rate Mortgage Ins Loan Origination Charges
Bring 2 forms of ID to settlement day
Wire closing funds (or bring certified funds) for settlement.
Prepayables (ie, interest, taxes & homeowners Insurance) 1 year of your homeowner's insurance policy Title search fees Settlement fees Transfer Taxes (city, county & state, if applicable) Pro-rated HOA or condo fees
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