Posted on: 20th Mar, 2013 09:50 pm
Hello,
First time home-buyer here, so please be warned.
I was wondering if anybody could offer any insight into a pattern I've noticed:
I have narrowed my house-hunt down to an area of four neighborhoods in my city. If all goes well, I would like to be moved within the year with a 20% down-payment on a 30 year fixed-rate mortgage.
Problem is, I've been doing some poking around on my city assessor's webpage which holds all sales data for properties in the above-mentioned neighborhoods, and I'm noticing that many (a majority of) sales have been exceeding appraised value. This has apparently been a pattern for years.
My concern is two-pronged: there is the obvious worry about whatever is causing this discrepancy between market and appraisal (the word "bubble" comes to mind), but practically speaking, I am worried that attempting to get a loan will be a nightmare. I am by no means prepared or willing to bring extra cash to the table as a buyer.
I understand that low appraisals have been a problem since 2009. My question is: is this a normal pattern to notice? Is there something I don't know about this process? Should I be worried about shopping in an area like the one I'm shopping in?
Thank you in advance,
tos_bio
First time home-buyer here, so please be warned.
I was wondering if anybody could offer any insight into a pattern I've noticed:
I have narrowed my house-hunt down to an area of four neighborhoods in my city. If all goes well, I would like to be moved within the year with a 20% down-payment on a 30 year fixed-rate mortgage.
Problem is, I've been doing some poking around on my city assessor's webpage which holds all sales data for properties in the above-mentioned neighborhoods, and I'm noticing that many (a majority of) sales have been exceeding appraised value. This has apparently been a pattern for years.
My concern is two-pronged: there is the obvious worry about whatever is causing this discrepancy between market and appraisal (the word "bubble" comes to mind), but practically speaking, I am worried that attempting to get a loan will be a nightmare. I am by no means prepared or willing to bring extra cash to the table as a buyer.
I understand that low appraisals have been a problem since 2009. My question is: is this a normal pattern to notice? Is there something I don't know about this process? Should I be worried about shopping in an area like the one I'm shopping in?
Thank you in advance,
tos_bio
Hi tos,
As far as I know, this is not a normal thing, The lenders will give a loan based on the property value. The loan amount may not exceed the property value a appraised by the appraiser.
Take care
As far as I know, this is not a normal thing, The lenders will give a loan based on the property value. The loan amount may not exceed the property value a appraised by the appraiser.
Take care