It’s no secret that the housing market has been on the up and up, just like mortgage rates. It’s not like things are getting dire — rates are still floating above record lows when one compares them historically, but it still has created a sense of urgency in the market. Many outlets have reported on the increase of home sales, construction and optimism in the market over the past few months: Bloomberg reported recently that “Home sales probably increased in July to the highest level in more than three years,” which is a good economic indicator for the country’s economy. Many are looking to buy with a limited, but rising, supply of homes.
With a highly competitive market, no one looking to purchase or refinance a home wants any hiccups in their mortgage process. Unfortunately, the home appraisal process can become one of those hiccups. The Detroit Free Press recently wrote on how low home appraisals have been, which impacts the city’s housing market, citing cautious attitudes from the sub-prime mortgage crisis as one of many potential reasons for this.
It’s important for every homeowner to understand the ins and outs of an appraisal process: what an appraisal is, how appraisals can slow down the mortgage process and actions you can take to get the best value out of your appraisal. For more information, check out this special Markets & Musings on getting a home appraisal with Quicken Loans VP of Mortgage Operations, Mike Lyon.
Stay tuned for more editions of Markets & Musings, on topics like how rising rates affect the housing market recovery and why adjustable rate mortgages are starting to become more popular. If you have any lingering questions on the home appraisal process, please comment below.