Financing skeptical on how process is going?
We are almost complete with our re-finance on our home. We are in an ARM right now that is currently up to %10. The new deal will be %8.125 fixed. We just built an entire second floor. I replaced every single, door, window, pipe, fixture, siding, boiler, new decks, swimming pool, hot tub etc etc. Thier appraiser basically appraised my house $50k higher than before I did anything. My house doubled in size. I went from 2 bedrooms to 4 bedrooms. Long story longer, the appraiser showed up and stayed for about 15 minutes. He didnt look in the garage or at it for that matter, he listed on the final appraisal that it was a 3 bedroom. He listed 200 feet of road frontage when we have 900. There were many discrepancies and omissions. When we informed them they said at this late in the application process the errors wont change the value enough to change our numbers much. Lots of 12:00 surprises it seems. Anything to worry about?
Public Comments
- yes be worried!!! Plus the 8.125% deal sounds pretty bad too. What are the terms of the loan...what is your loan amount, what is the value of the home, what is your credit score??? Are you using income documentation to qualify for the loan?? It sounds to me that the person helping you with the loan is afraid that with more time you would find a better deal. If you would like to see what else is out there feel free to contact me Eddie.k@gwhloans.com
- Yes, worry about the rate. 8.125% is a terrible rate, even if you have terrible credit! If you actually got approved at this rate you are being taken advantage of.
- You've got to love the predators! This aside, let's look at the appraisal. First, I've personally inspected over 40,000 homes and not many took over 15 minutes. If you know what you're looking for, B.S.'ing with the homeowner aside, it doesn't take long. The key is acquiring the appropriate data in that short period. Obviously, you've not divulged your market so, a pool and hot tub may be as desirable as a fireplace in other markets. This being said, you must first understand that "cost does not equal value". Bedrooms are typically based upon utility, and does your "4th" have a closet or is it a "walk-through"? By virtue of Gross Living Area you've increased the value of this property. "Road Frontage" may or may not be an issue (is the site legally divisible and does road frontage play a role), but omissions are an issue. At minimum, whether you complete the loan or not, you want an accurate appraisal. This may be used in the near future. Do insist an an "accurate" appraisal predicated upon similar recent sales in your market area.
