• 616-570-8864
  • sylvia@shesellsgr.com

Tag Archive mortgage

5 Simple Steps for a Better Home Appraisal

If you’re looking to refinance your home or possibly sell, you’ll need a killer appraisal. A bank will not refinance a home for more than it is worth, and a potential buyer will not pay more than the recognized value of the home.

Here are 5 simple steps for a better home appraisal:

Tidy your space Make sure your yard looks well-groomed and the interior of your home is clean clutter-free. It is well worth the investment to have the home professionally cleaned and have your yard serviced.

Invest in the right types of renovations kitchens and bathrooms are the best types of renovations. They will typically provide 80% return. High-efficiency appliances and upgrades that improve the overall efficiency of the home are well worth the investment.

Sylvia Dana is a REALTOR® serving the Grand Rapids and surrounding areas. Call or tex: 616-570-8864

Document your upgrades Provide the appraiser with a list and documentation of all upgrades, renovations, and improvements to the home.

Do your homework Research and provide your own comparable valuations for similar properties in the area. Note your tone. You don’t want to come off as defensive but rather helpful.

Be available but not in the way Be present to assist with the process but don’t be the appraiser’s shadow. You want to appear helpful, not nervous that he’ll find something wrong!

Appraisals can be helpful in increasing the sale of your home or assisting in refinancing your mortgage. Use these tips and you’ll get a better value for your home.

Which Down Payment Strategy is Right for You?

Thinking about buying a home in Grand Rapids? If so, you might be waiting until you have enough money for a down payment. Or maybe you haven’t even thought about needing a down payment.

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.