Value Checks on Home Mortgages

Video Transcript

"Hi, this is Jim DiVertri from Allied home mortgage in Lansing, Michigan on behalf of Expert Village. After you sign your documentation, what a good loan officer will do is get you a value check. A value check has to do with an appraisal, it's what we call over in our office a pre-appraisal, just to see if the value is in the property that you are buying so that you know ahead of time that you know what, the house is a hundred and forty thousand dollars and it might appraisal for a hundred and fifty, yeah the value is there so everything is on the up and up. If the values check is appropriate, then we order an appraisal and we also order a title, these are all done in the same swoop, at least that is the way that we do it here at the office. A full appraisal after the value check is what you need to make sure that the equity is there in the house. The mortgage companies want to see that ahead of time, of course you would like to know what you are buying is what the Realtor and everybody has told you. Value, the appraisal usually costs you between three hundred to three hundred and seventy-five depending on if it is a conventional or an FHA appraisal. FHA appraisals cost a little bit more, because there is a little bit more work to be done with that. These all help you, allow you to make the more informed decision on what is, what you are buying and what want."