The Impact of Rising Prices on Home Appraisals in Nutley

The Impact of Rising Prices on Home Appraisals

The fact that residential home prices in Nutley are increasing substantially in most regions of the country is music to the ears of homeowners. However, if you are in the process of selling your home, make sure you realize the major challenge a hot real estate market creates.

Each house must be sold twice; once to a buyer and a second time to an appraiser who represents the bank that will grant the purchaser a mortgage to buy the home in Nutley (unless it is an “all cash” purchase). In a real market with escalating prices, the second sale may be the more difficult. And a recent survey by Quicken Loans reveals that the gap between what a homeowner believes is the value of their home compared to an appraiser is widening.

Appraisal-vs-Homeowner-Value-KCM

This could lead to an increase in the percentage of real estate transactions being challenged by a ‘short’ appraisal in Nutley (where the appraiser value is less than the contracted price of the home).

Bottom Line

Whether you are a buyer or a seller, you must be prepared for this possibility as it may result in a renegotiation of the price of the home.

Looking to buy or sell a home in Nutley NJ, call Realty Execuitves Elite Homes 973-846-0065

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Knowing the Rules Eases Buying Homes in Nutley

Knowing the Rules Eases Buying Homes in Nutley

Nutley Homes For Sale

 

 

 

 

 

 

 

 

 

Sometimes, even after your mortgage application has been approved, you have to scratch your head at apparent non-sequiturs that attach to the process (for instance, when a loan is made contingent upon your repaying an ultra-low-interest credit account).

Even more so if your perfectly dandy financial situation results in a turndown. How could this happen? The answer usually makes perfect sense…but only if you understand that bankers and mortgage brokers are bound by policies and procedures that apply to everyone currently buying homes in Nutley. Knowing the rules ahead of time can influence how readily mortgage applications are approved. Some guidelines:

Forget adding “mattress money.”

Your bank account gets a thorough going-over, of course. If you have recently deposited a bundle of cash with no apparent source, it looks as if you are artificially hiking up the balance (perhaps with borrowed funds). Too bad about that garage sale: if the cash has not been on deposit for at least 90 days, it can be considered ‘unseasoned’ – likely to raise questions.

Disclose all pertinent info.

Many credit applicants in the process of buying homes assume the credit investigation will be limited to the information disclosed on the application. Not! Underwriters are trained investigators always on the lookout for anything that looks like fraud. Buying homes involves sums that deserve serious investigation; even relatively minor oversights are likely to be discovered. Answer: supply all the information asked for.

Avoid employment hopscotch.

Those who suddenly change jobs while in the process of buying homes in Nutley  raise the odds of their application being affected. This is especially true of wholesale shifts in careers or industries. Even for otherwise praiseworthy professional moves, an employment outlook that appears unpredictable isn’t helpful.

Bottom line: those who will be buying homes need to prepare knowledgably for the policies that govern mortgage approval. If you are among those who will be buying homes in the Nutley area this winter, call me today — I can put you in touch with a mortgage broker to start the pre-approval process!

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