Understanding Columbia SC Home Appraisals
Mortgage lenders all require Columbia SC home appraisals to determine the property’s value to make sure they are not lending you more money than the property is worth. Your lender orders the appraisal, and you are responsible for paying the fee. Costs can vary from $250.00 to $500.00. 
The property is the collateral for your mortgage so you can understand their concern that they will be able to get their money back if you default, and they have to foreclose and sell your home.
Lending guidelines have become stricter now because of the record number of foreclosures that have occurred the past few years making it harder to get loans even if you have good credit. An appraisal is just one assurance the lender has that they are making a low risk loan. They are also concerned about your credit and payment history.
What Exactly Is In Columbia SC Home Appraisals?
Columbia SC home appraisals contain the property dimensions, including the lot size and square footage of the home, the number of rooms, upgrades and amenities, the year built and the property location. The appraisal can be done one of two ways. First by using the sales comparison approach, or by using the cost approach.
The sales comparison approach is used for resale property by comparing at least three to five other similar properties that have recently sold and making adjustments up or down based upon the subject property’s size and features. The cost approach is used for new construction by calculating the replacement cost to rebuild the home if it were damaged or destroyed.
The appraised value is what your home is worth in today’s market. If the home does not appraise, you have a couple options. Put more money down, ask the seller for a price reduction, pay for a second appraisal or walk away from the transaction and find another home.
While you don’t get to choose the appraiser, you can make a request that the lender use a local appraiser. The reason a local appraiser is better is they are familiar with the area as opposed to an outside appraiser who doesn’t understand the quirks of your local market. There is no guarantee that the lender will grant your request, but it doesn’t hurt to ask.
It is important to understand the process for Columbia SC home appraisals and their importance when purchasing a home. While you don’t need to be an expert, you should have a general understanding. Your mortgage broker or lender will also be able to answer any questions you may have as well.
If you have any questions about anything having to do with Columbia SC home appraisals, we’d love to hear from you.