Loan Road Map: Stop #6 Appraisal and Title
An appraisal decides the value of the property that you are purchasing. This is important because it decides how much money a bank is willing to lend you for the property you want to purchase.
An appraisal starts with an inspection of the inside and outside of your home (not as detailed as a home inspection) and sale prices of comparable homes in the area. A detailed report will be typed up and include:
- Explanation of how the value of the property was determined
- Size and condition of the home, including improvements that have been made
- Statements regarding structural problems, if necessary
- Notes about surrounding areas, such as new development, rural acreage, etc.
- Evaluation of recent market trends of the area
- Comparative market analysis
Appraisals typically cost between $300-$500. If the appraisal doesn’t match the offer price, your Realtor can help you come up with a solution. It’s not the end of the deal, so don’t worry!
A property title is the legal way of owning the right to house. It shows ownership so nobody else can claim, control, possess or dispose the property. This document is filed within the county government.
To read about Stop #5, click here.
To learn more about Stop #4, click here.
To learn about Stop #3, click here.
To catch up on Stop #2, click here.
To read about Stop #1, click here.