Posted: Fri Apr 27, 2007 1:06 pm Post subject: appraisal and get a mortgage
few months back my DH got a house from his mother all title clear and we are planning to get a mortgage to do some changes on the house. firstly we want to get the house appraisal while lenders want to their own appraisal and charge us the fee with the closing cost, we ourselve wanted to make sure about the value as the real full value is not known as no appraisal done to a number of years now, how should we know the value it is now, and for taking the loan, if we contact too many lenders would it affect the credit score as they all will be pulling the credit report. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
if we contact too many lenders would it affect the credit score as they all will be pulling the credit report.
All inquiries within a period of 45 days are treated as a single inquiry, so contact a few lenders and have them pull your report within this time period only. This will result in only 1 inquiry showing up on your report and very less reduction in your score.
firstly we want to get the house appraisal while lenders want to their own appraisal and charge us the fee with the closing cost, we ourselve wanted to make sure about the value as the real full value is not known as no appraisal done to a number of years now, how should we know the value it is now
To get an estimate of how much worth your house presently is you can contact a certified appraiser in your area and have the house appraisal done.
That way you will be able to know its present market value and accordingly take out a mortgage for the amount you will need.
Posted: Sat Apr 28, 2007 2:46 am Post subject: credit inquiries on report
Hi Patrick,
Inquiries on credit report do not have serious affect. And, even if there are inquiries, you can remove them from your report. You can read more on this issue from a discussion on Credit Inquiries.
Yes you can have multiple lenders pull your credit and it will not be effected if done within 45 days.
For appraisals, you can get one done without any issues to realize the true value. Make sure you are confident in the lender you choose before you get the appraisal done however, appraisers by law cannot transfer the appraisal into another lenders name. I'm an appraiser
I would be buying home and are in talks with a few lender. Do you think i should get my home appraised with the one i prefer or do i use the lender's appraiser?
The appraisal can be carried out by the appraiser you have appointed or else the lender may appoint an appraiser. But if you do not avail the services of the lender's appraiser, then the appraisal will be reviewed by the lender and then accepted.
Also some lenders, primarly the larger ones will not accept appraisals from an appraiser who is not on their approved list. If you get an appraisal done by an appraiser who isn't on their list, it can slow down the process. They will try to get the appraiser approved first, if they cannot get the appraiser approved they will require a second appraisal.
My sugguestion would be to ask the lender if they have an approved appraiser list, or if they can use any licensed appraiser, if you really want to use your own appraiser. Otherwise I'd just let them take care of it.
Thank you for the welcome! Its a great forum to help people with mortgages and Real Estate. I look forward to sharing my input. I'm sure I'll learn a thing or two about the mortgage industry myself.
I really don't see the reason for hiring a real estate appraiser and if you know you are going to get a loan. The appraisal is a requirement of the lender to determine value of the property used for collateral. The appraiser is "hired" by the lender and is providing the lender with that assessment of value.
If you weren't sure of your home's value prior to selling or to determine a spouse's equity position prior to filing divorce, then that makes sense. But to determine prior to borrowing means you are going to pay for 2 appraisals. I just don't see the value of spending your money in that manner.
Posted: Mon May 14, 2007 4:07 am Post subject: basis of LTV - appraisal or purchase price?
Hi,
If you can clear my confusion, the LTV is based on appraisal amount or the purchase price. I and my fiancé will be buying with no down payment so our LTV would be 100% and doesn't matter what the appraisal comes out to be. Is that so??
Posted: Mon May 14, 2007 5:14 am Post subject: RE: LTV for 100% financing
Hi Macay,
The LTV is based on appraised value of the property. If the appraised value comes out to be less than the purchase price and you wish to get 100% financing, you need to negotiate with the seller. The seller may bring down the purchase price such that it equals the appraised value. Or else, you may have to pay a higher rate of interest in order to go for 100% financing.
However, the appraisal should be made within a period of 30 days prior to loan closing. Otherwise, it would be considered as invalid.
colin
