Home Appraisal Library

BENEFITS OF ELECTRONIC APPRAISERS IN CALCULATING THE HOME VALUES

2009-11-18T01:47:00.001-05:00

Knowing the home values is very important whether you want to sell your home or want to purchase home. Home values are a very important figure that should be accurate, (unlike any other figure), because if these values are over-estimated or under-estimated, there can be a failure in the transaction of the home.

There are different ways in which the home values can be known on the basis of their size, location, amenities, etc. Out of these different ways, the online option, where the home values can be known, is the best, time-saving & money-saving method, with which the most accurate figure of the home can be known. This is known as the Home Values Appraisers service provided by the Electronic Appraiser.

This Electronic Appraiser for calculating the home values work electronically, where whosoever wants to know the home values just needs to input the details of the home like the location of the house, the complete address of the house, number or bedrooms & number of bedrooms in the house, year in which the house is built, tax assessment, previous sale or renting information & also any other details like different other amenities available nearby the location of the house. With all these information, it becomes easier for the home values appraiser to calculate the home values to present it to the person looking for it.

The benefits of Electronic Appraiser, the online home values calculator, can be seen as below:

• Time & Money saving Method: The Electronic appraiser for home values saves lot of time & money, as getting the same service from any real estate agents or anybody else would consume more of both the resources.
• Detailed information: The Home Values appraisers at Electronic appraiser give the detailed information about the home values with all the details like the actual amount of the house in the surrounding locations, the amount of the house that is been searched, the amount of house per sq. ft., etc. With all these informations, it becomes easier for the people to understand the home values unlike creating any misunderstandings with the pricing.
• Real Time Data: The data that is given by the Electronic appraiser is real time data & not just the fake or the imaginary ones. The data that are presented are generated as per the actual market prices of the house & the prevailing rates of the property. The figures that are provided can be re-checked by the one who wants to know them as per their convenience.
• User-Friendly Format: The formats in which the data or the house values are presented by Electronic Appraiser are absolutely in the user-friendly format. This format is very much simpler as the one who is searching for such data will never be able to understand the data if it is the technical language. Even the technical data of the report is converted into the simpler form so that the people can understand the data.
• Information in Collaboration with the prevailing Property Values in the market: The home values that are given by Electronic appraiser are not just given vaguely. These informations are in collaboration with the prevailing home values in the market. This ensures both-the buyer & the seller, that they are not been cheated upon & can go ahead with the transactions of the properties.

The home value provided by the Electronic appraiser are so advantageous for the property buyers & sellers that save lot of time, money, resources, etc. Electronic appraiser are especially beneficial in usage for the people who do not want to waste lot of time & money over the real estate agents & also who do not know where to get the correct information about the home values.

Know Your Home Value with Electronic Appraiser

2009-10-07T08:16:00.003-04:00

Calculating proper home value is a very important factor for selling or even purchasing a house. Over-estimation or Under-estimation of home value might lead to non-sale of your valuable house. And similarly, you can get cheated too if you over-pay for the property that is not worth so much. So, it is very much necessary to get the proper estimation of your house value when it comes to purchasing or selling it.

For this, you can hire the A real estate professional a real estate professional & get the estimation done. But the valid question is, will the a real estate professional himself have the exact house value estimation detection ability, or may be even he might be mistaken in that. So, to avoid all these de-motivating factors, there is a perfect key to this problem- Electronic Appraiser. This is the device that helps you to calculate & get a customized home value reports.

There are different types of home-values that can be obtained through Electronic Appraiser- Complete Valuation Report, Comparable Sales Report, Full Traditional Electronic Appraisal & Find a real estate professional Service. The Complete Valuation Reports are also known as Automated Valuation Model, which is a highly computerized house value that has been designed to outshine the traditional electronic appraisal methods. These home values are almost equivalent to the reports used by the banks & loan lenders during the loan obtaining process.

The Comparable Sales value is also a computerized sales report and is said to be a perfect choice if you are looking for a recent sale within an area. The Traditional Electronic Appraiser is the most complete valuation product as far as the customers’ satisfaction is concerned. This is the basic valuation report used by the property lending institutions. A licensed appraiser will fix-up an appointment with you, visit your home & will provide you with a written report containing all the information about your house in terms of market value. This report consists of the comparable sales, formulas & qualifications of the Electronic appraiser.

If you want to plan this procedure through real estate professional, we can provide you with that also. This service is very quick & free of cost and very anonymous indeed. With this, you can choose the best real estate professional who will guide you for purchasing or selling the house.

Electronic Appraiser has many important features, mentioned above, which makes it a very better house value calculating device. Unlike the risks that are taken by the actual real estate professional, our procedures are very simplified & effective, as well as loss-proof.

For more details on calculating home values with the Electronic Appraiser, log on to www.electronicappraiser.com.

4 Questions to Ask When Hiring a Real Estate Agent

2009-03-19T08:21:00.001-04:00

After you get your home appraised and have a good idea of how much you can expect to receive for the sell of your home, it is time for you to start deciding how you are going to go about selling the home. Of course, you might decide that you want to represent yourself in the sell of your home. But, if you prefer to hire a real estate agent to help you through the process, there are several key questions you should be sure to ask. This way, you can be certain to get the right agent for the job and to achieve the best possible results. To that end, here is a look at a few of the key questions you should be sure to ask when interviewing potential real estate agents.

How Long Have You Been in the Real Estate Business?

Ideally, you want to work with a real estate agent who either has many years of experience in the field or who has a mentor with a great deal of experience in the business. One benefit to working with a newer agent is that they tend to provide their clients with a great deal of attention. Just make certain the agent has a competent mentor that he or she can contact if problems should arise.

What Strategies Will You Use to Sell My Home?

Your real estate agent should have a solid plan in place for successfully marketing your home to potential buyers. This may include implementing a direct mail campaign, creating flyers and using the Internet to advertise your home. Ask the agent to explain the methods that he or she plans to use and why using these strategies should be an effective method for selling your home.

What Makes You Better Than Other Real Estate Agents?

In addition to helping you learn more about what you can expect from the agent, asking this question also helps you can gain a better understanding of the qualities and characteristics the real estate agent thinks are important. Obviously, you will need to pick an agent who exhibits the characteristics you find to be most important as well. For example, is it more important for the agent to be an excellent negotiator or are you looking for someone who is friendly and easy to reach by phone or email? Choose the agent who best suits your personal needs.

What is Your List Price to Sales Price Ratio?

The agent’s list price to sales price ratio represents the difference between the price you are asking for the home compared to the price at which the agent sells the home. As a seller, you are looking for a real estate agent with a high list price to sales price ratio, as this indicates the agent does a good job selling properties at the price the owner is asking.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

What to Expect from a Home Inspection

2009-03-10T14:56:00.000-04:00

If you are trying to sell your home or if you are interested in purchasing a home, you may mistakenly believe that getting an appraisal is the same as getting a home inspection. While there are some similarities between the two processes, they are actually quite different and serve very unique purposes. Whereas an appraisal is meant to help determine the value of the property that is being bought or sold, a home inspection is meant to help the potential buyer understand what may be wrong with the home before making a purchase. In fact, after completing a home inspection, the buyer may want to renegotiate the price of the home based on the repairs that are going to need to be made.

What is Inspected During a Home Inspection?

There are several key areas of the home that are reviewed during a home inspection. These include:

· Appliances - includes range, oven, dishwasher, garbage disposals, microwaves and smoke detectors
· Attic - includes ventilation, framing, roof construction, gutters and flashing
· Electrical - includes grounding, wiring, ceiling fans, exhaust fans and light fixtures
· Exterior - includes grading, landscaping, elevation, wall covering, fences, driveways, trim, driveways, sidewalks, windows, fascia and lights
· Garage - includes ceiling, walls, slabs, firewall, openers, garage doors, exterior windows, lights, roof and windows
· House Systems - includes furnaces, water heaters, duct work, air conditioning, sprinklers and fireplaces
· Plumbing - includes showers, toilets, faucets, sinks and traps
· Structure - includes the floors, ceilings, walls, foundation and roof

The report you receive after the inspection will tell you about any problems that may be a danger to your health or safety as well as any moisture or drainage issues. You will also receive notification if the roof has a short life expectancy, if the foundation is deficient or if your furnace or air conditioner are malfunctioning.

What is Not Inspected During a Home Inspection?

While there are certainly many things included in a home inspection, there are many areas that are not addressed by the typical home inspection. For example, the home inspector will not check for asbestos, radiation, radon, lead, formaldehyde or methane. He or she also will not check for wood-destroying organisms such as termites, for rodents or for mildew, mold or fungi. This is primarily because the home inspector is not certified to check for these particular problems. Therefore, it is a good idea for you to hire a professional to check for these potential health and safety issues as well.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Deciding How Long to List Your Home

2009-03-04T12:16:00.001-05:00

Are you considering hiring an agent to help you with getting your home sold? If so, there are many things you will need to take into consideration when negotiating the services you would like the agent to provide. One of these is how long you want your home to be listed. Remember, it is up to you to determine the listing length of your home. Therefore, it is important for you to have an idea of the pros and cons of various listing lengths so you can determine which length is best for you.

The 30 Day Listing

If your home is in a hot market where most other properties are selling in less than 30 days, a 30-day listing may be your best option. This way, if your agent fails to sell the home within those 30 days, you can hire the services of another agent who can get the job done more quickly. Before giving your agent the boot, however, you should take a closer look at your property and what you are asking for it. It is possible that you are asking for more than the property is actually worth, which could be the reason why it has failed to sell in such a short time period.

The 90 Day Listing

The 90 day listing is one of the most common in the housing market. Nonetheless, you should have a pretty good idea of whether or not the property is priced right within the first 30 days. With a 90 day listing, however, you can get an idea of whether or not your property is priced right and then you can work with your agent to determine what changes might need to be made in order to make your home more desirable to potential buyers.

The 180 Day Listing

The 180 day listing makes more sense when dealing with a buyer’s market, such as what most markets are currently facing. If you go with a 90 day listing within a buyer’s market, the listing might expire while it is still in escrow. If this happens, you may need to extend the listing anyway. Therefore, it is often easier to simply start off with a 180 day listing when in a buyer’s market. When agreeing to a 180 day listing, however, it is a good idea to ask the agent to provide you with a written guarantee that you can cancel the listing after 90 days if you are not happy with the service. If the agent refuses to provide a guarantee, you are better off hiring someone who will.

The One Year Listing

If you live in a more remote area or in a market where homes move slowly, a one year listing contract may be your best option. The same is true if you are selling an unusually large or unique property, vacation homes and private islands as these homes tend to take longer to sell because there are less potential buyers for these homes.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

What Impacts the Value of Your Home?

2009-02-23T09:22:00.001-05:00

Did you know that there are more things involved in determining the value of your home that its most basic features? The reality is that there are several features and characteristics that homeowners are looking for when purchasing a new place to live. Here is a look at just a few of those things.

The Street

The street and the location of the property on that street will be important to your buyers. If your home is located on a busy street, for example, you will probably have to knock thousands of dollars off of your price. This is because houses on busy streets tend to be noisier and, if the buyer has children or plans to have children, a busy street is a safety hazard. The same is true of houses with corner lots. While these homes generally have larger lots than other homes on the street, they do have more problems with traffic noise and trespassing than homes that are not on corner lots. If your home is in a cul de sac, on the other hand, buyers with children will be far more attracted to your home.

School Districts

Although school districts are technically subject to change, they often are pretty static. Therefore, if your home is located in an area with a top-notch school system, you will find it easier to sell your home to buyers with families.

Special Amenities

Those little "extras" in your home may help make it more attractive to potential buyers, though some buyers won't be willing to pay extra for certain added perks. Therefore, you generally don't want to add extra amenities in order to increase your chances for a sale. If you already have extras such as a spa, a pool or a fireplace, however, it may help you get a little extra or your home.

Availability of Utilities

The availability of utilities such as satellite service, DSL service and access to public utilities such as water and sewage will also impact your sale. Most buyers are looking for a home that allows them to enjoy these modern conveniences, which means you may have a harder time making a sale if these amenities are not available in your home.

Condition of Electrical, Plumbing and Heating and Cooling Units

The condition of items such as your electrical, plumbing and heating and cooling units will also impact the value of your property to potential buyers. After all, no one wants to purchase a new home and have to replace these items within the first couple of years. Therefore, if your electrical, plumbing or heating and cooling units are outdated or in need of repair, you should either replace them or expect to knock down the price your are asking for your home.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Does Your Home Have a Bad Layout?

2009-02-19T12:01:00.001-05:00

When it comes to appraising the value of your home, one thing that many appraisers do not take into consideration is the layout of the home. Although the layout may not be factored in when valuing the home, it is certainly a factor that potential buyers will consider when deciding whether or not they want to make a purchase. Unfortunately, there are many bad layout designs that can decrease your chances of selling your home. Here's a look at some of the most common layouts that potential buyers find unattractive.

A Stairway or Hallway that Faces the Entrance

In some homes, you are immediately greeted by a stairway when you enter the home. This can have a negative impact on the first impression a person has when entering the home. The same is true when the entrance leads immediately into a long or dark hallway. Remember, buyers generally make their first impression of a home within 6 seconds after entering, so you want to make certain this first impression is a good one.

The Center Dining Room

Having a dining room in the center of the home is also a turn-off to many buyers, as it requires walking through the dining room and around the table in order to enter most other rooms. This layout is considered inconvenient by most people because it does not provide easy access to the other rooms in the house.

Bedrooms That are Connected

Connected bedrooms can be unattractive to buyers because of the lack of privacy it creates. In fact, in some parts of the country, an appraiser will consider adjoining bedrooms to be just one room.

Bedrooms Accessed through the Dining Room or Living Room

Many people do not care for a home with bedrooms that have to be accessed through the dining room or living room because this also reduces privacy. In addition, a bedroom that is connected to a dining room or living room will be more susceptible to being disturbed by the activity that takes place in these rooms.

Oddly Placed Guest Bathrooms

The location of the guest bathroom can also be a turn-off to potential buyers. In some older homes, for example, a long hallway may end with a bathroom, which provides for an unattractive and uninviting view down the hallway. Similarly, most potential buyers will not care for a bathroom that can only be accessed after walking through a bedroom or a utility room either.

Lack of a Good View

Homes seem to be larger when you can sit in one room and see other rooms. Therefore, open space and doorways will help create this feeling of spaciousness, which will appeal to a larger number of potential buyers.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Three Major No-Nos to Avoid When Selling a Home

2009-02-09T08:47:00.001-05:00

Are you looking for a way to make your home more attractive to potential buyers? While an appraiser may only consider the basics of your home when developing an appraisal, such as the number of rooms in the home and its total square footage, there are some factors that can significantly decrease the value of your home and the likelihood of making a sale and you may not even realize it! In fact, there are many things that homeowners innocently do with their homes without realizing the potentially negative affect things factors have on the overall value of their homes. Here's a look at just a few.

Getting Attacked by Pets

While the dog may be a man's best friend, it can be the worse enemy of the homeowner who is trying to make a sale. Whether you have hired a Realtor to show your home or you are planning to make the sale on your own, keep your pooch away while the property is being shown to prospective buyers. Some potential buyers may actually be frightened if they are greeted by your dog in the driveway or at the front door - even if your dog is the friendliest pet an owner could ever hope to have. Others may be simply irritated by your pet or possibly even allergic. So, do yourself a favor and take your pet to a friend's house or to a boarder while your house is being shown.

The Seller Who Can't Leave

Just as it can be bothersome to have a pet hang around while the house is being shown, so can it be if you stick around while the house is being shown. Obviously, you will need to be at the house showing if you are selling the home yourself. If you have hired a Realtor to help get the job done, however, it is best for you to leave during the showing. If you stick around, potential buyers may feel uncomfortable about looking through closets and really getting a good look at the home. After all, it will make them feel as if they are invading your personal privacy. In order to get the house sold, you need to make certain the potential buyer is as comfortable as possible. If you absolutely must be present while the house is being shown, make certain to give the potential buyer some space and not to hover.

Watching Out for Wallpaper

If at all possible, you should also limit the amount of wallpaper on the walls in your home. Many potential buyers are not major fans of wallpaper and those who do like wallpaper probably won't like the colors and patterns you have selected. So, do yourself a favor and remove the wallpaper and apply a fresh coat of paint instead. This way, you will be able to appeal to a larger group of potential buyers and will be more likely to get your house sold in a short period of time.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

5 Inexpensive Ways to Increase the Value of Your Home

2009-02-03T08:00:00.001-05:00

Are you looking for some easy steps that you can take to increase the value of your home while also improving its overall curb appeal? If you hope to sell your property quickly and to get top dollar from it, it is important for you to take a few simple steps to help it look its best. With these simple tips, you will be able to increase the value and appeal of your property without having to make a large investment.

Tip #1: Work on the Lawn

Your lawn is one of the first things potential buyers will notice when they see your home, so make certain it makes a good impression. Do everything you can to make your lawn look healthy and green. If you will be selling soon, you may want to consider laying down new sod so you can get an instant improvement. If you have time, on the other hand, weed and fertilize your lawn regularly until it is looking great and be sure to add edging in order to create that well manicured look.

Tip #2: Improve Your Landscaping

After noticing your lawn, prospective buyers will also notice your landscaping. You don't have to spend hundreds of dollars to give your landscaping a complete overhaul. Rather, planting a few annuals near your house or around your trees will really spruce up the look of your yard. You should also consider adding some bushes or plants around your foundation in order to create a more welcoming look.

Tip #3: Focus on the Door

After getting past their initial impression from the lawn, your potential buyers will enter your home through your front door. Therefore, you want to be certain the door is as attractive and inviting as possible. To that end, you should paint the door or possibly even replace it if necessary.

Tip #4: Keep it Fresh

If you want to lure people into buying your home, it should look fresh and attractive both inside and out. Therefore, be certain to clean up any dirt and clutter and to take steps to make the outside, the walls and the windows look fresh and crisp. You may need to apply a fresh coat of paint certain areas and cleaning your windows may take a little extra elbow grease, but the payoff will be well worth the effort.

Tip #5: Make Upgrades

If certain parts of your home are getting rundown or are simply outdated, you may want to make a few upgrades before you put your home on the market. Replacing countertops, cabinet hardware and doors, toilet seats and faucets are all relatively inexpensive facelifts that can really spruce up your kitchen and bathroom and make your home more attractive to potential buyers.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Top 5 Ways to Turn Off Potential Homebuyers

2009-01-30T12:31:00.001-05:00

If you are trying to sell your home, its appraised value is irrelevant if you no one is interested in your home. For that reason, it is important for you to take steps to make your home as attractive to potential buyers as possible. But, did you know that there are certain things you can do with your home that will actually make them not want to buy it? Here is a look at the top 5 ways to lose out on a sell.

Unappealing Smells

One of the first things a potential buyer will notice when stepping into your home is the way it smells. Pet smells and cigarette odors are the top two turn-offs, but potential buyers will also be turned away if they smell mildew, old food smells or other odors. Therefore, be certain to do everything you can to make the home smell fresh and clean. Keep in mind that it is easy to become used to the smells in your own home, so ask someone with a fresh sniffer to smell the inside of your home and give you some feedback on how it smells.

Lack of Lighting

Lighting is essential when it comes to making a room feel warm and inviting. In addition, proper lighting will help make the space look larger and more appealing. Therefore, you should be certain to replace any dim light fixtures while also removing heavy drapes and cutting tree limbs that may be shadowing your house. You may even want to consider installing additional light fixtures or skylights in order to increase the amount of light entering your home. Cleaning your windows and repainting your rooms with a color that reflects light will also help make the inside of your home appear brighter.

Overgrown Gutters

Gutters with plants growing inside are a big turn off to potential buyers, as they will view this as a job they will have to tend to right away. In addition, it makes it look as if the home is not properly cared for and maintained. So, be certain to clean your gutters before putting your home on the market.

Excessive Dampness

Dampness in the basement is a major concern for buyers, as it is a sign that there is a leak in the foundation. While this isn’t necessarily the cause of your dampness, just the potential of a leaky foundation is enough to turn most homebuyers away. If you are getting moisture in your basement, look for other potential causes and try to rectify the situation. Some places to look include underground drains that may be clogged, a lack of rain gutters along the roofline or downspouts that are facing the wrong way.

Scummy Bathrooms

No matter where it is found, dirt is a major turn off to potential buyers. Nonetheless, you should pay particular attention to your bathroom. Having a bathroom that is bright and shiny is a sign that you take great care of your home, so repaint it, purchase a new curtain and scrub it down in order to make it look as good as you possibly can.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Increasing the Curb Appeal of Your Home

2009-01-26T16:49:00.001-05:00

When it comes to increasing the value of your home, you may not need to look as far as you thought. In fact, making a few simple changes can potentially increase your home's value while also helping you get it sold more quickly. So, what is the secret? The answer is curb appeal.

What is Curb Appeal?

Put simply, the curb appeal of a home is a measure of its attractiveness when viewing the property from the road. In other words, it refers to the first impression your buyer is likely to get. In order to determine your home's level of curb appeal, you should ask yourself whether or not your home looks appealing as you pass it on the road or as you pull up in your driveway. If your home lacks curb appeal, you will lose out on many potential buyers before they even come inside your home. Therefore, no matter how attractive your home looks from the road, you should do everything you can to make it look even more appealing before you put it on the market.

How Can I Increase Curb Appeal?

In order to increase the curb appeal of your home, you should first identify the most attractive exterior features of your home and then find ways to enhance them. Sometimes, simply adding a little edging or weeding away the vegetation growing between the bricks in your walkway can go a long way toward improving your curb appeal. Other inexpensive ways to improve your curb appeal include:

Removing any mold or mildew growing on your driveway, house or sidewalks
Clean your windows, gutters, siding, decks and patios
Put away items so your lawn is free of clutter
Rake your leaves, mow your lawn and get rid of the weeds growing in your yard
Trim trees and pushes so they are neat and attractive

You might also need to repaint the outside of your home, add some new landscaping, replace your door or complete a few other changes that will require spending a little money. Nonetheless, the investment will likely be minimal, while the rewards can be fantastic.

Is There Anything Else to Keep in Mind?

While making your house look more attractive from the main road during the day is certainly of very high importance, you should also consider how your property appears at night as well as from other vantage points. For example, can your backyard be viewed from another road? If so, you should make an extra effort to make this part of your property look attractive from the road as well. Similarly, it is a good idea to enhance the curb appeal of your home at night, as you never know when a potential buyer will pass by. Simple additions such as placing lighting along your driveway, adding a decorative street lamp or other lighting around your doorways and windows will help make your home more attractive both day and night.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

The Ins and Outs of FHA Loans

2008-12-31T08:56:00.000-05:00

If you are interested in purchasing a home, you will find that there are many different financing options available to you. Depending upon your personal financial situation, one of the options you will want to explore is the FHA loan. This loan option has been available for over 60 years and, during that time, has made it possible for literally thousands of people to become proud homeowners.

The Benefits of FHA Loans

There are numerous benefits associated with FHA loans. For instance, if you have less than perfect credit, you may be able to get approval for an FHA loan even if you have been turned down for a conventional loan. Even if you have had financial difficulties and have had to file for bankruptcy, you can still obtain an FHA loan just two or three years after filing if you have maintained good credit since that time. In addition, if you have had to foreclose on a mortgage loan in the past, you can still qualify for an FHA loan just two to three years after your foreclosure if you keep your credit in excellent shape afterward.

In addition to the benefits associated with your credit rating, there are several other benefits you can enjoy when obtaining an FHA loan. For example, there generally is no adjustment made to the interest rate. If an adjustment is made, it generally varies by only about .125 percent from a conventional loan.

Another benefit to obtaining an FHA loan is the fact that the mortgage insurance is paid through the loan. This results in a premium of 1.5% that is added to the balance of the loan rather than having to be paid out of pocket. A small amount is also added to the monthly payment for the mortgage insurance premium, but this is generally lower than the cost associated with private mortgage insurance premiums.

Meeting FHA Loan Requirements

Although there are many benefits associated with acquiring an FHA loan, there are many requirements associated with the loan as well. For example, the home will have to pass through an inspection before it can be purchased with an FHA loan. Although the requirements have become less stringent over the years, the home must still meet certain qualifications in order to be purchased with an FHA loan. For example, a defective roof with a leak needs to be repaired, but an older roof does not automatically need to be replaced if it does not leak.

Although the home need to pass through an FHA inspection in order to qualify for the loan, it is important to note that this inspection is not meant to replace the traditional home inspection. Rather, you should obtain a professional home inspection in addition to the FHA inspection in order to make certain you are getting involved with a good deal.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Home Equity Loan or Credit Card - Which is the Better Option?

2008-12-29T09:39:00.001-05:00

Are you considering taking out a little extra money to make some home improvements? Or, perhaps you need some cash to help pay for someone's college or for some other important financial venture. Regardless of your reasons, you have two major options available for getting the money you need: you can take out a home equity loan or you can use a credit card. In order to determine which of these two options is best for you, there are many things you should take into consideration.

The Pros and Cons of an Equity Loan

When it comes to a home equity loan, there are many pros and cons for you to consider. Perhaps the biggest benefit to obtaining a home equity loan is the fact that the interest rate on home equity loans is generally much lower than the interest rate on credit cards. Therefore, depending upon the amount you borrow, how long it takes to pay back and the difference in the interest rates, you could potentially save hundreds or even thousands of dollars when you choose a home equity loan over using a credit card.

Perhaps the biggest disadvantage to obtaining a home equity loan rather than using a credit card is the fact that your home is put up for collateral. Essentially, taking out a home equity loan equates to taking out a second mortgage, which means your home can be foreclosed upon if you fail to repay your equity loan in the agreed upon manner. With a credit card, on the other hand, there is no collateral on the loan. While you still risk ruining your credit rating if you fail to pay the loan back properly, you significantly reduce your risks of losing your personal belongings when you use a credit card to obtain the funds you need.

The Pros and Cons of Using a Credit Card

The biggest con against using a credit card in order to give yourself a major loan is the fact that credit cards tend to have a high interest rate. If you take advantage of special promotional offers and if you plan your repayment schedule effectively, however, you can potentially enjoy a lower interest rate when you use your credit card.

Another perk to using a credit card rather than a home equity loan is the fact that you do not have to deal with the paperwork involved with getting a home equity loan. As such, you can obtain the funds much more quickly if you use a credit card that you already have. In addition, you don't have to worry about paying to get your home appraised or other costs that are involved with getting a home equity loan. At the same time, it is important to note that there may be extra fees associated with obtaining funds through your credit card as well, so be certain to learn more about all of the fees involved before you borrow cash from your plastic.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Understanding Jumbo Mortgage Loans

2008-12-22T10:17:00.000-05:00

Are you considering obtaining a jumbo mortgage loan in order to purchase the home of your dreams? If so, you may find that obtaining a jumbo mortgage in today's market is a bit difficult. Yet, only a year ago, jumbo mortgages were a relatively common type of mortgage loan for future homeowners to use when buying the home of their dreams.

What is a Jumbo Mortgage?

Put simply, a jumbo mortgage is a type of mortgage loan that exceeds the industry standard for a conventional loan. The amount of a mortgage loan that is considered to be conventional is determined by Freddie Mac and Fannie Mae and any loan that exceeds this amount is considered to be a jumbo mortgage. The amount that is considered to be conventional changes each year and certain areas have higher set limits than others. The U.S. Virgin Islands, Hawaii, Alaska and Guam are all areas that have a higher limit placed on conventional loan amounts.

What are the Risks of a Jumbo Mortgage Loan?

Obtaining a jumbo mortgage loan is actually more of a risk for the lender than it is for the buyer in many ways. Even if you have obtained an appraisal that demonstrates the value of the property you wish to purchase, selling one of these homes to the mainstream homebuyer can prove to be difficult. In other words, if you were to default on your loan and the lender were to repossess the home, the lender will likely have more difficulty selling your home because there aren't many buyers in the market capable of paying for a luxury home. In addition, the value of a luxury home can be quite subjective and can change quickly. For that reason, many lenders require at least two appraisal before they will approve a jumbo mortgage loans.

What are the Drawbacks to Getting a Jumbo Mortgage Loan?

Although a jumbo mortgage loan is not necessarily riskier for the buyer, there are drawbacks to getting this type of loan. Namely, jumbo mortgage loans tend to have higher interest rates than conventional mortgage loans. The increase in the interest rate depends greatly on the current market trends, but generally ranges anywhere from 0.25 to 0.5%.

Another drawback to applying for a jumbo mortgage loan is that you may have difficult obtaining the loan. Just as recently as a year ago, jumbo loans were a fairly common phenomenon because the market was stronger and the prices on homes were increasing. With the current status of the market, however, the prices on homes have fallen and lenders have become less willing to take a risk on a jumbo mortgage. Therefore, unless you are getting a great deal on a home with a high appraised value and unless you have an excellent credit history, you may find it nearly impossible to get a jumbo mortgage loan.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Understanding Different Methods for Valuing a Home

2008-12-04T10:11:00.001-05:00

When you consider the value of your home, you probably think of the value in only one way - How much money could I get for my house if I sold it? But, did you know that there are actually many different ways to look at the "value" of a property? In fact, when you get your home professionally appraised, you may receive several appraisal values based upon the various definitions used within the real estate industry. These values may be defined as any of the following:

Market Value
Value-In-Use
Investment Value
Insurable Value
Liquidation Value

With so many different methods used for determining the value of a home, it is a good idea to have a better understanding of these valuation methods so you can better understand the true value of your property.

Market Value
Market Value, which is also commonly referred to as the Fair Value or the Open Market Value of a property is an estimate of how much a buyer would likely be willing to pay for the home. This method of valuation is the one that is most commonly determined by professional appraisers, with the value being largely determined by assessing the price at which other similar properties had recently been sold.

Value-In-Use
The Value-In-Use valuation is generally lower than the Market Vale price. This is because the value is determined based upon the value the property holds to one particular user.

Investment Value
Unlike the Value-In-Use value, the Investment Value of a property is often greater than the Market Value. This is because the Investment Value is based upon the value the property holds for an investor. In order for a property to be worth investing, the investor must have some reason to believe he or she can make money from the property. The investment value may be higher if the owner has special benefits, such as grandfathered zoning, agglomeration benefits and exceptional financing terms.

Insurable Value
The Insurable Value of a property is the value at which the property should be insured. This value is generally based on the structure only and does not include other aspects of the property, such as the value of the land.

Liquidation Value
The liquidation value of a property is also often referred to as the forced liquidation or orderly liquidation value. The liquidation value of the property is the value that is used during bankruptcy proceedings. This value is generally lower than the Market Value because if it is determined based upon the amount the seller is likely to receive when trying to sell the home faster than the timeframe most homes stay on the market.

Regardless of the method used to value the property, it is important to note that the Market Value is not necessarily the amount you will receive when putting the home on the market. Rather, it is simply a guideline to help you get a general idea of how much you should shoot for when selling your home.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Understanding the Difference Between a Realtor and a Real Estate Agent

2008-11-25T16:29:00.001-05:00

If you are looking for a real estate agent, you may be surprised to learn that there is a difference between a real estate agent and a Realtor. Although many people use the term "Realtor" as a general term to describe a person that helps individuals buy and sell homes, a Realtor is actually a specialized type of real estate agent that has met certain criteria in order to earn that title.

What is a Realtor?

In order to be designated as a Realtor, a real estate agent must be a member of the National Association of Realtors. Therefore, any real estate agent claiming to be a Realtor who does not belong to this organization is purposely misrepresenting his or her licensing. You can identify a real estate agent who is a Realtor by looking for the Realtor logo on the agent's business card, sales literature or other marketing documents.

How is a Realtor Different from a Real Estate Agent?

In order to become a member of the National Association of Realtors, a real estate agent must adhere to a strict code of ethics. For example, a Realtor may not deliberately mislead a homeowner regarding the market value of the property and is required to subjectively submit offers and counter-offers as quickly as possible. In essence, the code of ethics requires Realtors to treat buyers and sellers fairly and honestly.

Realtors are also required to maintain a certain level of knowledge regarding the buying and selling process. This way, you can make certain the Realtor is knowledgeable and up-to-date when it comes to real estate transactions.

What Can a Realtor Do for Me?

While you can certainly bypass the Realtor and buy or sell a home without the help of one of these professionals, there are many benefits that come with working with a Realtor. These include:

Getting help with finding the right lender
Providing you with information about properties that are not actively being advertised on the market
Assisting you with obtaining information about the neighborhood, including zoning information, school information and utility information
Providing you with negotiating power to help you get the best price
Assisting you with finding experts to conduct necessary inspections, including dry rot, termite, roof condition, termite and septic tank inspections
Providing you with information about your various financing options
Guiding you through the closing process
Providing you with up-to-date information about current market trends
Knowing where and how to advertise your property effectively
Helping you evaluate the proposals of potential buyers

Obviously, the most important consideration when selecting an agent is to find someone you can trust and who has a solid reputation. Nonetheless, you might want to first consider hiring someone who is a licensed Realtor in order to get the added peace of mind that hiring one of these professionals provides.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

What You Need to Know About Your Home's Appraisal

2008-11-19T12:41:00.001-05:00

If you are planning to sell your home or if you wish to apply for a home equity loan, getting your home appraised is a critical step in the process. By determining the value of your home, lenders can better determine how much they are willing to loan to you for an equity loan or home much they are willing to lend to a potential buyer. Nonetheless, many homeowners know little about the appraisal process or what it entails. While you certainly aren't expected to be an expert in home appraisal, it is good to know a few basics before you hire someone to provide a professional appraisal of your home.

Understanding the Appraisal Report

After the appraiser has walked through your home and made all of the necessary assessments, he or she will create an appraisal report. Generally, these reports are about two to three pages long, though it is possible or an appraisal to be more than a hundred pages long as well. Information that is typically included in these reports include:

Details about your home
A description of your neighborhood
Side-by-side comparison information of your home and other similar properties
An evaluation of the real estate market in the area
Information regarding any major problems with the property

By using all of this information, the appraiser is then able to provide an estimated value of the property as well as an estimate of how long it will take to sell the property.

Developing the Appraisal Report

In order to develop the appraisal report, the appraiser will primarily compare your home to the amount that similar homes have recently sold for. It is important to keep in mind that an appraisal is not the same as a home inspection, which is intended to determine whether or no the home is structurally sound. Rather, the appraiser is simply looking to identify any distinguishing characteristics of your home that can help select other recently sold homes that can serve as a point of comparison.

Obtaining an Appraisal Report

If you have recently purchased a home, you can obtain a copy of the appraisal report from your lender. Whether you realized it or not, you paid for an appraisal when you purchased your home and federal law gives you the right to obtain a copy of that report. If you purchased your home more than a year ago, however, you probably should obtain a new appraisal report in order to properly reflect changes in the market as well as any changes you may have made to the home.

Using Your Appraisal Report

Once you receive your appraisal report, you can use it to help improve the value of your home. Focus on any items that gave your home's value a negative adjustment and make any necessary updates or changes. This way, you can increase the value of your home and sell it at a higher price or receive a larger home equity loan if necessary.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of on-line home appraisals and offers a nationwide personalized instant informational report about home appraisal. For more information, please visit .
http://www.electronicappraiser.com.

Understanding the Costs of a Home Equity Loan

2008-11-14T14:08:00.001-05:00

Are you considering obtaining a home equity loan? While home equity loans can present you with a great way to consolidate bills or to make large purchases, it is important for you to understand that there are many fees that are typically associated with obtaining a home equity loan. Therefore, it is important for you to understand the expenses associated with home equity loans so you can take out the type of loan that is best for you and your personal situation.

Typical Closing Costs

Just as is the case when taking out a mortgage loan, there are typically many closing costs associated with taking out a home equity loan as well. In fact, the closing costs of home equity loans are generally equal to 2 to 5 percent of the total amount of the loan. This is because there are several fees associated with the closing of a home equity loan. These include:

Application fees
Attorney or title agent fees
Document preparation fees
Property appraisal fees
Title search fees

If you take out a home equity line of credit rather than a traditional home equity loan, you may not have to pay all of these closing fees in order to seal the deal. Still, you will likely have to pay for the property to be appraised and there may be an annual fee for keeping the line of credit open.

Interest Fees

Any time you take out any type of loan, you will have to pay interest on the funds you have borrowed. The same is true when it comes to equity loans, whether they are the traditional home equity loan or a line of credit equity loan. If you take out a traditional home equity loan, you will likely be charged a fixed interest rate. If you take out a line of credit home equity loan, on the other hand, you will likely receive a variable interest rate instead. Either way, the interest rate will likely be lower than what you would find on a credit card. Nonetheless, you should compare offers and be aware of the costs that interest fees will add to your overall expense.

Keeping the Costs Down

While it is impossible to completely avoid paying fees when taking out a home equity loan, there a few steps you can take in order to keep your expenses minimal. One of the most important steps you can take is to shop around, as different lenders will have different terms available with their loans. You may also be able to save money by selecting a lender that will take a computerized estimate of your home's value rather than paying an actual appraiser to go to your home. While there still may be costs associated with these types of fees, they are generally far less than what you would pay for a full appraisal.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

Saving Money on Your Homeowner's Insurance

2008-11-11T13:40:00.001-05:00

As a homeowner, you want to be certain your property is properly insured. After all, your home is the single biggest investment you will likely ever make. As such, you want to make certain it is protected against damage, vandalism or thievery. At the same time, you don't want to spend more than necessary to insure your home. Therefore, in order to save the most on your home insurance cost, you might want to follow these simple tips.

Tip #1: Get Your Home Appraised

Before you start searching for a home insurance policy, you need to have a good idea of the value of your home. This way, you know how much coverage you need to have in place in order to replace your home if it becomes completely damaged.

Tip #2: Shop Around

It is also important for you to take the time to shop around and to compare the policies and rates of various insurance companies. Ideally, you should get at least three different quotes to compare. Be certain the policy terms are the same with each of the companies you compare. That way, you can be certain you are fairly comparing what each company has to offer.

Tip #3: Increase Your Deductible

Increasing the deductible on your home insurance policy is one of the quickest ways to decrease your premium payments. In fact, simply raising your deductible from $500 to $1000 can save you as much as 25% on your premiums. Of course, before you make this change, make certain you would be financially capable of meeting the deductible if a disaster should occur.

Tip #4: Look for Combo Deals

In many cases, you can save money on your insurance policy if you purchase your homeowner's insurance and your automobile insurance from the same company. In fact, some companies will reduce your premium payments by as much as 15% if you carry both types of policies. So, be sure to keep this in mind when shopping around and comparing the rates of different companies.

Tip #5: Make Some Changes to Your Home

Making a few simple changes to your home can sometimes result in a decrease in insurance costs. For example, installing shatter-proof glass, adding storm shutters and modernizing your plumbing, heating and electrical systems can all help reduce the costs of your insurance. Similarly, adding security features such as burglar alarms, smoke detectors and dead-bolt locks can also bring down your rates. Discuss these items with your agent and find out which additions to your home can help you bring the cost of your insurance premiums down. In some cases, you may need to install certain brands or follow specific guidelines in order to receive the discounts offered by your insurance company.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

What to Look for When Hiring a Real Estate Agent

2008-10-27T10:34:00.001-04:00

Are you planning to sell your home? If so, determining the value of your home with the help of an appraiser is an important first step in the selling process. In addition, unless you plan to sell the home on your own, it is essential to hire the right real estate agent to help you throughout the entire selling process. With the help of the right real estate agent, you can get the most money possible for your home while selling it as quickly as possible. A qualified real estate agent can also make the entire process go smoothly, whereas the wrong real estate agent can make the process seem burdensome and difficult. Therefore, if you plan to hire a real estate agent to help you sell your home, be sure to look for one that offers these characteristics.

The Specialist

Ideally, you should work with a real estate agent that specializes in selling the type of property you have to offer as well as one that specializes in selling real estate in your neighborhood. This way, you can be certain the real estate agent will have the type of knowledge and expertise necessary to sell your property.

The Planner

It is also important to work with a real estate agent who can clearly communicate the plan he or she plans to use in order to sell your property. Before you hire an agent to help you with your sell, be sure to ask how he or she plans to market your property and what he or she will do in order to make your property more attractive to buyers. A real estate agent with a plan is more likely to get your house sold in a timely fashion.

The Communicator

Of course, you also want to hire a real estate agent that is able to communicate effectively with you and that you feel comfortable with. You will be working closely with your real estate agent right up until you close on the selling of your property. Therefore, you want to hire someone who you can easily talk to and who you feel actually listens to your needs and concerns.

The Non-Relation

Even if you have a friend or relative who is a real estate agent, it is best to avoid asking them to help you with the sell of your home. While this may seem like a good way to save money, it can result in a strain on your relationship. In addition, although it may save you some money in terms of the commission, it may cost you money in terms of the amount you are able to get for the property. Remember, you want someone who will be truly aggressive about getting you the best price possible, so stick with a specialist in order to get the best results.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

The Ins and Outs of Home Equity Line of Credit Loans

2008-09-18T14:18:00.000-04:00

If you are a homeowner, you may be considering opening up a home equity line of credit. While having an open home equity line of credit is a good idea, there are many things that you should consider before going that route.

What is a Home Equity Line of Credit?

After you purchase a home, you will begin building equity in your home with every payment that is paid toward the principal. This is because your home’s equity is the difference between how much you still owe on the home and how much the home is worth. If your home is valued at $250,000, for example, and you owe $200,000 on the home, you have built $50,000 in equity.

When you take out a home equity line of credit, the bank will allow you to take out a loan that is equivalent to a certain percentage of your equity. Most lenders will allow you to take out a home equity line of credit that is worth up to 80% of your equity. Therefore, if you have $50,000 in equity, you will be able to obtain a home equity line of credit of up to $40,000.

A home equity line of credit is different from a traditional home equity loan because you do not get the entire loan in one lump sum that needs to be repaid in monthly installments. Rather, you are given a line of credit that is similar to what you receive with a credit card. As such, you can borrow against it whenever you need the money and you pay it back in the same way as a credit card. In terms of payment, the major difference between a home equity line of credit and a credit card is that home equity loans generally remain in effect for a specific period of time. At the end of that period of time, the entire remaining debt you owe becomes due.

The Drawbacks of a Home Equity Loan

The major drawback to home equity loans is the fact that your home is put up for collateral. As such, if you default on the loan, your home can be foreclosed upon in order to repay the debt. Therefore, you should use great care when deciding what you will purchase with your home equity loan and you need to be certain you are in the financial position to repay the loan in a timely manner.

The Benefits to Home Equity Loans

One of the benefits to home equity loans can also be seen as a drawback: ease of attainment. Since your home is used as collateral, it is fairly easy to obtain a home equity loan even if you have bad credit. This is nice if you are in a pinch and really need the cash, but it is bad if taking out the loan puts you in a bad financial situation.

The interest you pay on a home equity line of credit can also be used as a write-off on your tax return. Therefore, taking out a home equity line of credit for a loan that will take time to pay off is a better option than using a credit card.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

Tapping Into Your Home’s Equity

2008-09-10T16:02:00.001-04:00

According to research conducted by the Federal Reserve, the best investment you can make is purchasing a home. Unlike the stock market, which can be quite volatile, the investment you make into your home is relatively risk free and generally provides a reliable return of the money invested. In fact, the Federal Reserve claims that those homeowners that sold their homes during the last five years made a net capital gain of $25,000 or more. At the same time, if you want to take advantage of this net capital gain, you don’t actually have to sell your home. In fact, you can tap into that equity in a number of different ways.

Refinancing Your Mortgage

One way to take advantage of the equity in your home is to take out a refinancing mortgage. When you refinance your mortgage, you actually replace the old mortgage with a new one. When replacing the old one, however, you borrow more than what you still owed on the home. This way, you can use the extra money in any way you please. If you managed to get a lower interest rate on your refinanced mortgage, you can potentially save yourself a little money as well.

Taking Out a Home Equity Loan

When you take out a home equity loan, you don’t replace the old loan. Rather, you still carry the other mortgage loan and you simply add another home loan on top of it. For this reason, home equity loans are often referred to as second mortgages. Taking out a home equity loan requires less paperwork than refinancing, but the interest rates tend to be several points higher than refinanced mortgage rates.

Preparing for a Rainy Day with a Home Equity Line of Credit

Just as with a home equity loan, a home equity line of credit is a type of loan that is in addition to your mortgage. This type of loan is different, however, in that you are extended a line of credit in the same way you receive a line of credit with a credit card. In this way, you can borrow against the line of credit as you need to, but you can also keep your balance at $0 if you don’t need to borrow against your equity. This type of equity loan typically has few up-front costs and you can usually get approved for one of these loans rather quickly. In addition, you don’t have to worry about paying interest until you actually borrow against the credit line.

If you need to tap into the equity that you have built in your home, be sure to explore your options and select the one that is right for you. At the same time, avoid taking out a home equity loan or refinancing your home for frivolous expenses. After all, your home is on the line when you refinance or take out a home equity loan and you want to be certain you can afford to pay the loan back.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

Understanding the Difference Between Being Pre-Qualified and Pre-Approved for a Mortgage Loan

2008-09-05T16:24:00.002-04:00

If you are in the market to purchase a new home, you might want to consider meeting with a lender in order to find out how much you can afford to pay on your new home purchase. By meeting with a lender, you can successfully determine a price range for your home purchase, which will help you to significantly reduce your choices. At the same time, when you meet with a lender to discuss how much you can afford, you might be a bit confused by the terms associated with this prescreening process.

Getting Pre-Qualified

While there is some disagreement within the industry regarding what it means to be “pre-qualified” for a loan, most lending institutions agree on one definition. The most commonly accepted definition is that getting pre-qualified for a loan means that the lender has made an educated guess about how much you can afford to purchase a home. This guess is based entirely on the information that you provided to the lender and may change significantly once the lender verifies the information that you provided. Of course, the more honest you are with the lender, the closer these figures will match with the amount you are actually approved to borrow.

Getting Pre-Approved

Again, there is some disagreement surrounding what it means to be pre-approved. The general consensus of this term, however, is that the lender has actually verified the information that you have provided. With this information, the lender was able to more accurately determine how much of a loan you would be able to receive. Although this is still not a guarantee of approval, you can be relatively certain that you will be able to qualify for a loan up to the amount the lender has pre-approved.

The Benefits of Getting Pre-Qualified and Pre-Approved

There are many benefits associated with getting pre-qualified or pre-approved for a mortgage loan. The most obvious benefit is that it gives you a better idea of how much you can afford to pay on a home. Of course, you should also take a look at your budget for yourself and consider both your short-term and long-term goals in order to be certain you can truly afford the amount you have been pre-qualified to receive.

When it comes to making an offer on a home, being pre-approved for a loan can also be advantageous. Since you went through the trouble of getting pre-approved and because it is relatively certain that your loan will be approved, a home seller may accept your bid over another person’s bid if you are pre-approved for a loan. Also, by being pre-approved before you start house hunting, you may be able to close the deal sooner once you find the perfect home.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

5 Tips for Taking Out a Mortgage Loan

2008-08-28T15:16:00.001-04:00

When it comes time to purchase a home and take out a mortgage, there are several mistakes that many homebuyers and homeowners do on a routine basis. In order to be certain you put yourself in the best financial position possible and that you properly protect yourself and your home, be sure to implement these five simple tips.

Tip #1: Do Your Research

Many homebuyers, particularly first time buyers, are so excited about purchasing a home that they fail to do their research about available types of mortgages. Be certain to take your time to investigate the types of mortgage loans available and choose the one that suits your finances, future goals, and lifestyle the best.

Tip #2: Don’t Have Too Much Credit

When it comes time to apply for a mortgage loan, many lenders will frown upon your application if you have an excessive amount of credit. Even if you are responsible with your credit cards and other loans, having too much credit can be almost as bad as having poor credit. So, don’t apply for any new loans before it comes time to apply for your mortgage.

Tip #3: Be Honest on Your Loan Application

Some homebuyers are tempted to lie on their mortgage applications, particularly when it comes to how much they make. Not only can misleading information get you caught up in a mortgage you really can’t afford, lying on a mortgage application is a federal offense. Although most lenders do not prosecute people for lying on their applications, it is certainly not a risk that you want to take. In addition, if you are approved and the lender later discovers that you lied, you may be forced to pay the entire remaining balance of the loan all at once.

Tip #4: Never Sign an Incomplete Application

Just as you may be tempted to stretch the truth in order to be approved for a loan, an unscrupulous lender may also put false information on your application in order to gain approval. Therefore, make certain all of the blanks are filled in before you sign your application.

Tip #5: Get the Home Inspected

Although getting your home inspected is an added cost that you may not want to have to pay, it is in your best interest to get it inspected before you make a purchase. A home inspector looks over every aspect of the home and will be able to tell you if there are any problems with the home. This way, you can better determine if you really want to purchase the home or you can renegotiate the price according to the repair that need to be done. By getting the home inspected, you give yourself one more chance to make certain you are getting what you ask for with your new home.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .

Tips for Buying a Home in Foreclosure

2008-07-01T16:41:00.001-04:00

If you are looking for an investment home, you might be interested in picking up a home that is in foreclosure. While buying a home that is in foreclosure can certainly be a great way to make some extra money, there are a few things you should keep in mind before moving forward. In this way, you can ensure the process is as smooth as possible for everyone involved.

Know Your State Laws and Regulations

When it comes to foreclosure, the proceedings vary from state to state. Therefore, even if you have purchased a home in foreclosure in the past, that doesn’t mean the proceedings will be the same if you are considering a purchase in another state. Similarly, if you are looking for homes for sale by owner on an MLS listing, keep in mind that the proceedings may be different on a home in a different state from where you live.

In some states, it is possible for homeowners to stay in a home for up to a year while going through foreclosure. This is particularly true in states where the mortgage system is used. In those where trust deeds are used, on the other hand, the owner may have only about four months before he or she has to vacate the premises.

Understand the Period of Redemption

Don’t get too excited about a purchase until the sale is finalized. Nearly every state allows the homeowner to enjoy a period of redemption. This means the owner has the right to take care of the financial default, which includes paying all of the costs of the foreclosure as well as paying back the missed principal payments and back interest. If the homeowner manages to accomplish this within the state’s designated timeframe, he or she can regain control of the home. Although this doesn’t happen often, it is possible. In order to gain a better understanding of how this works in your state, it is best to consult with a real estate lawyer.

Make Certain You Can Handle the Emotional Stress

When considering investing in a foreclosure, many people fail to think about the fate of the homeowner. More than likely, however, you will come face to face with the homeowner and the family that is losing its home. This is particularly true when it comes to homes that are for sale by owner. For many people, meeting those people that are losing their home can be quite upsetting and uncomfortable. Therefore, be certain you are mentally and emotionally prepared for this situation before you get started in the purchase process.

Homes go into foreclosure for many reasons. In some cases, the homeowner may have been laid off, fired, or unable to work due to medical problems. Others may have buried themselves in a debt they were unable to repay while others may be going through major life changes, such as divorce or the death of a loved one. These situations can be quite heartbreaking and can make an investor feel guilty about the purchase. At the same time, you may be helping the homeowner get out from beneath a burden that he or she can no longer carry. In that case, it can be a win-win situation for everyone involved.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.electronicappraiser.com/, which is a leading provider of home appraisals that offers a nationwide personalized instant informational report about house values. For more information, please visit www.electronicappraiser.com .