Every mortgage news story is filled with details of banks going under and the tightening of home loan credit lines. Homeowners looking to refinance are often finding it more difficult than it was a few years ago. First, they now have to meet a set of stringent new requirements; then they risk a low house appraisal.
Unfortunately, this problem of low house appraisals is occurring across the country. You can explore http://www.norsktakst.no/ to find home appraisals.
Homeowners who purchased several years ago are often being told that their homes have fallen in value and that the appraisals on them are insufficient for the lender to make a new loan. This is happening even in cases where you may already have a loan with the mortgage lender you are trying to refinance with.
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As there are only a few sources of mortgage information that actually describe to a homeowner exactly what an appraiser does once he decides that value for your house, I've prepared this"nutshell" model. I also have clarified one of the more important reasons why evaluated values are much lower than just a couple of short years back. The real causes of a low appraisal might be more complicated, but that is normally the principal culprit.
After the appraiser appears at your residence, it's his job to gauge the likely selling price on the date he sees the house. The principal element that determines the likely selling price of your residence is the housing market in the region where the home is situated. If the place has lots of repossessed homes which are actively"available," it might push the likely selling price of your house.
How? It's a matter of economics. The appraiser looks at exactly what your home would have to be priced in to compete with each the homes that are"available" in your area. There are just so many buyers that are eager to purchase in any individual area, and if two houses offer you the exact attributes, buyers will typically go together with the lower priced option.