Planning to Finance that Real Estate? – Some things you need to know.
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With the interest rates remaining low, the interest for buyers of real estate to finance the property remains popular. And why wouldn’t it? The prospect of liquidating other investments or depleting a cash cushion when the cost of borrowing is so low is questionable.
To accomplish the financing, you enter the “loan process.” Since the passage of the Dodd-Frank bill into law, many new procedures and processes designed to protect the consumer from abusive loan activities have changed the loan process significantly.
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Borrowers can expect they will need to provide more documentation to qualify for a loan, and the time from loan application to the closing will be about 45 to 60 days. Can it be done quicker? Yes, but there are some things that can slow down the loan approval that are out of the control of the bank or the borrower. |
| One of these things is the appraisal on the property being purchased. It used to be that the bank would simply call up one or two of their known appraisers to conduct the appraisal. Now, in order to not have the appearance, or the reality, of influence over the appraiser, the appraisal request is submitted to a third party clearing house who then assigns the appraisal out to an appraiser. The assigned appraiser may not have deep local knowledge of the market where the property is located. This is of particular concern on Sanibel and Captiva as we do not have a large volume of transactions that would give an appraiser the comparable properties to establish a value. |
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Fortunately, Realtors who represent the buyers of these transactions are aware of this situation. They can assist in providing information on current real estate transactions of similar properties. Ultimately the appraiser will determine the similarities or differences of the properties and establish a fair value. Bottom line – the loan process is somewhat complex so ask questions and be informed.
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I've helped buyers through the lending and appraisal process as well as personally buying, selling and building on Sanibel Island, and I am ready to put my experience to work for you! Whether you are buying or selling, I'm here to help you through the process.
This looks to be an active selling season with lots of great properties to choose from, so give me a call today!
Or you can start your search online through my website search feature. You can choose to search by map, price or any other criteria you choose.
Make this your year for Sanibel and Captive Island real estate!
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Sarah Ashton, Broker Associate
ReMax of the Islands
239-691-4915
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