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9 Requirements Banks Demand and Why This Is Important to Get Your Loan

February 28, 2012 | Comments: 0 | Views: 390

Banks have specific requirements that must be met by appraisers. I'll let you know some of the top requirements and what they mean.

"A certified appraiser must inspect the property." The bank wants a certified appraiser because they offer more experience and can appraise homes that may be valued at over 1 million dollars; whereas, a licensed appraiser can only appraise homes up to 1 million, but not over 1 million. If your home is even close to 1 million dollars, make sure your bank hires a certified appraiser.

"Measure the home and offer an interior floor plan." This is a standard of every appraiser. The appraiser will measure the exterior of the home for single family appraisals (for condos, the home is measures from the inside of the home). The interior floor plan is wanted by some banks to see if the floor plan is functional or not. Functional means that the bedrooms and bathroom flow good. A dysfunctional floor plan would be one that offers three bathrooms and no bedrooms on the upper level and all of the bedrooms in the basement. This would mean that to use the bathrooms, one would have to go up to the main level and up to the upper level just to use the bathrooms. All the bedrooms in the basement would cause another functional issue.

"Is the zoning is illegal." If the home is zoned for a single family, and the home has been converted into a duplex, this would be considered illegal, because the zoning does not allow multifamily zoning. In most cases, if the home is not in use, the home will have to be converted back to a functional floor plan and the stove, kitchen sink, and dishwasher will have to be removed. In some cases, the kitchen sink and cabinets can be left in place, but check with your city or county to find out what you'll need to do to make your home comply with the zoning codes in your area.

"Private roads and agreements" The bank will want to know if your home is a private road, who maintained the road, is there easy ingress/egress for the road. Can emergency vehicles easily access the road? Is the road too steep, muddy, etc? The banks wants to know the items above because if you don't have ingress, egress to your home, then it will be difficult to sell. What happens if you don't have a road agreement? If you don't have access to your home, do you see how this could be difficult to sell?

"Alternative heating sources" Is your home heated by electric space heaters, wood stove or pellet stoves. If it is considered a permanent heat source that is common for your area and that offers an attached thermostat to control the heat, you should be okay. The bank wants you to have a heat source that is typical for your area. Because, again, if they have to take the property back, they want to be sure that they can sell the home.

Quick release latched for windows: This is a safety issue. If you have bars on the bedroom windows and/or the basement windows, make sure that there are quick releases inside the home and make sure there is not a separate key to open these windows. The idea is that you will not want to look around for your key when your home is on fire. The bank wants to be sure that you are safe.

The bank will want comparable sales that bracket the unadjusted market value. This means that if sales are $100,000, 120,000 and 105,000, the final value should be within this range of values. This prevents the homes to be adjusted too heavy to one side or another without real support. In fact, one of the main goals for the appraiser is to bracket at many items as possible. For example, the garage counts, the outbuildings, the basement area, the lot size, the views, etc.

Outbuildings: No value can be given to the outbuildings unless they can be supported by other sales that provide outbuildings. The banks do not want the appraiser to add value to the appraisal because of the outbuilding, just because. We all know that these outbuildings are expensive, but in some markets, the outbuilding will not increase the value of your home.

Aerial photos: Some banks are now requiring aerial photos of your home. These can be obtained on line from major search engines. Banks want to be sure that your home is located within the property boundaries and there are no major external issues that the appraiser or the bank needs to be aware of.

This is a basic list of appraisal requirements that banks want to know about. Look through these items to see if you can correct any of them before the appraiser gets to your home, because this will make it easier to refinance or sell your home.

Would you like to learn more about buying, selling, and refinancing a home from a real estate appraiser. if so, go to http://increasehomevalue.org

Source: EzineArticles
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