Planning to buy property or refinancing your mortgage?
Consider getting the property valued. This is a critical aspect of your mortgage application. Property value is based on various factors that have an impact on its worth. These include the size of your home, its age, and its neighborhood, quality of construction, improvements carried out if any and facilities around the area such as a golf course. Typically your lender or mortgage broker will handle this for you and cover the cost. The Valuation or Appraisal will be carried out as part of the application and approval process.
Why assess home value?
Home value is basically an idea of how much the property is worth in relation to the prevailing market rates and the value of other properties in the area. This value can vary depending on changes in the neighborhood, the overall real estate market and any renovations you might make to your property.
At the time of applying for your mortgage, your mortgage broker is likely to make note of several details about the property so that a fairly accurate value can be established based on which your mortgage loan value will be determined.
While buying property, your mortgage application will include the property’s purchase price and a detailed description of the property. If you are refinancing, the value of the loan will be decided based on property value in the area, a physical inspection and assessment. In case you plan to include the cost of home renovations to the mortgage application, you must provide details of this along with plans and costs.
Why you should consider a professional appraisal:
Professional appraisals are carried out in an in-depth manner and make note of the property’s features while comparing its value with other properties sold in the same neighborhood. This is called “Current Value Assessment”. Almost 85% of the property value is determined by the location, lot dimensions, living area, when the property was constructed and its age, renovations and quality of construction. The assessment also takes into account details such as the number of bathrooms, fireplaces, garages, pools, heating and cooling, basement area and other key features.
To have your property value assessed professionally, contact me anytime, I would love to help you explore different options.