So many details are involved in the buying and selling of a home. One of the most important details is the appraisal of a home. An appraisal, however, is not simply for Connecticut residents looking to buy or sell a home. It's also for those who want to know what their home is worth in the instance they want to apply for an equity loan. No matter what purpose your appraisal is for, it's important that you know a few vital details, including how long your appraisal is valid.
An appraisal is an important part of the loan approval process. It is a process that determines the value of your home. It is performed by a licensed appraiser. This professional comes to your home and inspects the interior, exterior and function of your home. The information he considers is the size, age, decor and even the location of your home. From that point, the appraisal process consists of finding comparable homes in the same location to find out how much your home is worth in comparison to those. Once the appraisal process is complete, you will find out how much a home is worth. Banks and lenders use this appraisal to determine how much they are willing to lend for the purchase of a home.
Appraisals are not valid forever. The real estate market is constantly changing, meaning a home might gain or lose significant value in a matter of just a few weeks or months. For this reason, Connecticut home appraisals are only valid for six months. However, when the market is changing at a faster than usual pace, some lenders will require that you obtain a more recent appraisal. While it's always safe to say yours is valid for approximately six months, talk to your lender to see if you need a newer appraisal of your home.
You might need an appraisal for a number of purposes. If you plan on taking out an equity loan on your home to do some improvements, your bank will want to know how much the home is worth before giving you money. If you want to buy a home, the appraisal is needed to show the bank how much the home is actually worth. If you want to sell your home, you might consider an appraisal so that you know what price range is appropriate for your listing price.
Appraisals in Connecticut are one of the most important aspects of any home loan. No lender will provide you with an approval for funds without an appraisal. Lenders want to know that they are not giving you more money than your home is worth in case they obtain possession of the home and need to sell it themselves in the future.