Apply For a Mortgage

Mortgage Application

After you choose a lender, you need to apply. This involves filling out an application form and paying an application fee and an appraisal fee. The lender then reviews your application. They do a credit check, and verify your employment, salary and assets.

They’ll also evaluate the property. This is known as the appraisal.

The Appraisal

The appraisal, similar to the CMA, is done by a licensed real estate appraiser.
The appraiser determines value primarily through a cost analysis and a sales comparison. The cost analysis determines what it would cost to build a similar house. The sales comparison involves comparing the subject property to at least three similar ones, known as “comps.” Comps are properties that:

    • Are similar in style, square footage, number of bedrooms and bathrooms, age and other characteristics;
    • Are in close proximity to the subject property; and
    • Sold in the last six months.

The appraiser takes data from the comps and makes adjustments, as no two houses are exactly alike, in order to arrive at a final value estimate. This will determine the amount available for the mortgage.

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