At Colony Title, we know that becoming a homeowner is an incredible milestone for yourself and your family members. Once you’ve found the home of your dreams, placed an offer upon it, and received acceptance of your offer — the next step in the process is the home appraisal. A home appraisal is critical to ensure that a fair purchase price is placed on your dream home. A home appraisal ultimately affects your monthly mortgage payment, title insurance, and owner’s insurance costs in the home buying process. By ensuring that you’ve received a fair and accurate home appraisal, you’ll know exactly what you’re paying for.
What is a Home Appraisal?
An appraisal provides an accurate calculation of the home’s market value that you’re placing an investment in. Think of a home appraisal as a professional report on your future home’s fair market value. A home appraisal ensures that you’re receiving the house’s correct value in accordance with your loan company. An appraiser is never connected with the homeowner or homebuyer; it is a neutral party that can perform an accurate appraisal of the home’s market value.
How Does a Home Appraisal Affect Title Insurance?
If you’ve placed an offer on a home and the home appraisal determines that the market value of your home is lower than your offer, then you can negotiate a lower purchase price with the seller. As a result, your monthly mortgage payments will be less expensive — and so will your title insurance and owner’s title insurance purchases. An accurate home appraisal determines the most accurate monthly mortgage and insurance costs.
How Does a Home Appraisal Affect Owner’s Title Insurance?
An accurate home appraisal ultimately will affect the overall cost of how much you are paying in your monthly mortgage rates and your overall insurance payments. For example, a house purchased in the 200,000 range owner’s title insurance will be more affordable than a house purchased in the 400,000 range. This is why an accurate home appraisal is necessary — it can genuinely affect the cost of ALL your payments in the home buying process.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.