Appraisals and the Value of the Home You’re Purchasing

An appraisal is basically an evaluation by an independent professional. It could an appraiser to determine an opinion of the value of the home. The appraiser will look at recent comparable sales and market conditions to determine the value of a home in order to help support the agreed upon sale price. So let’s say the house you were looking to buy is $250,000. If you’re lucky, it may appraise for higher than what you are going to pay for it and that just means you get instant equity on the day you close. Suppose however the value comes in lower than the sales price. Well, this does allow you to possibly renegotiate with the seller, which may reduce your loan amount and save you money on your monthly payments. Appraisers also look at the condition of the home. Some programs do have much more strict guidelines on condition than others.

If you have questions, let me know.

Blue Water Navy Vietnam Veterans Act

Here’s a really quick update on something significant that has hit the lending world. The President just signed into law the Blue Water Navy Vietnam Veterans Act, and this is going to allow home buyers to borrow above the 2019 limit of $484,350 without a down payment currently.

If you do a lot of VA purchases, you know, it’s always been a split. There’s the conventional Conforming VA and then there’s the Jumbo VA, which requires 25% down of the difference between the two. So that’s actually a pretty much gone and you can now have the veterans financing above the $484,350 and not have to bring any money down.

Additionally, just so you know, NAR along with other veterans benefits groups who really fought hard to keep from having the VA funding fee increased to offset this. So that’s actually super important because it looks like many folks in Congress wanted to do that and they were pushed back on that. So anyway, some really good news here in the VA lending world, and if you have any questions, give me a shout or shoot me an email.

Understanding Your Home Inspection

If you’re going to spend this much money on something, you want to know exactly what you’re getting. A home inspection is a great way to ensure the largest investment of your life, your home, is worth buying. From the roof to the foundation, a home inspector’s report should cover the overall condition of the home.

How to Get a Home Inspection

The home inspection usually comes after the purchase agreement is signed. Both parties want to make sure they have agreed on a price before anyone spends money on the inspection, which can range anywhere between $350-600 in Washington, depending on the size of the property.

Here are a few of the main areas a home inspector will be checking:

  • They should look for any cracks, dents, or leaks in the foundation, floors, walls, ceilings, siding, windows, doors, and the roof.
  • Inspectors are trained to check the condition of cables, conductors, and panels. They’ll also note the number of installed light fixtures, switches, and outlets.
  • The inspector should check out all the faucets, drains, and pumps. They’ll document things like poor water pressure and corrosion, as well as the age and condition of the water heater.
  • Inspectors will usually note the age and energy rating of furnaces and air conditioners. However, not all inspectors will check solar heating and air conditioning systems.

What to do with the results

It’s unlikely that the home inspector’s report will come back with a perfect score. If you find the damages to be too bad, you still have time to back out of the deal. If not, you can ask the seller to fix it before closing or negotiate a lower purchase price.

Either way, a home inspection is going to give you a better idea of the condition of a home, allowing you to make a better-informed decision to either move in or continue your search for the perfect Washington home.

If you are looking for a home in Washington, give me a call at 360.798.4161 to find out how you can get pre-qualified for a mortgage!