Pasadena Mortgage Brokers Company Answers Questions Regarding Appraisal

Los Angeles, CA - In many cases, lenders need a professional, independent appraisal of the property they want to buy or refinance to ensure that it is worth at least as much as they are being asked to lend on it. If a consumer is making a smaller down payment and have a lower credit score, the lender is going to be even more interested in making sure the property that will be collateral for the loan is worth lending the amount requested.

A professional, independent appraiser will usually visit consumer’s home and inspect its interior and exterior. The appraiser doesn't want to buy consumer’s home, and isn't a visiting head of state. So it is not good to postpone the appraisal in order to get a chance to "clean up a little." Cleaning does not make consumer’s appraised value higher! And delaying time to an already lengthy process.

The appraiser will form an opinion on the probable market value of the property considering sales of similar homes in the area among other factors. He or she will prepare an appraisal report explaining the conclusion. The appraisal belongs to the whomever covered its cost. Often, a consumer can receive a copy of the appraisal either as a courtesy or in keeping with state law. As consumer’s broker will make all arrangements regarding the appraisal.

“The lender wants to know first of all whether the property is worth at least as much as the loan amount. In the unlikely event the lender would have to foreclose, it wants to know it should be able to recoup at least the loan amount. But if your loan program depends on your borrowing, for example, 95 percent of the property's value and no more, the appraisal can impact your eligibility for the loan that's right for you. In a "close" case like that, the best solution is almost always to increase your down payment, or we can help find another solution such as another loan program that works,” states Devon Lendsey, Operation Manager for Lendcorp Mortgage Brokers (http://www.lendcorponline.com).

An appraisal can cost from $300 to $600 or more for very complex properties. A borrower will pay the independent appraiser directly. In some cases the appraisal fee may be paid upon settlement of the loan. “If you are concerned with whether or not it is worth ordering an appraisal don't be. Our team does extensive pre-appraisal research to verify an approximate value. Through our vast network of seasoned appraisers we'll work with the best to ensure that your property reflects its full market value,” added Mr. Lendsey.

For more information, visit http://www.lendcorponline.com.