YOUR PROPERTY
What is an appraisal and who completes it?
To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of a property. National standards govern not only the format for the appraisal, they also specify the appraiser's qualifications and credentials.
Will I get a copy of the appraisal?
As soon as we receive your appraisal, we’ll up update your loan with the estimated value of the home. As a standard practice we will provide a copy of your appraisal at time of issuance.
Are there any special requirements for condominiums?
Since the value and marketability of condominiums properties is dependent on items that don’t apply to single-family homes, there are some additional steps that must be taken to determine if condominiums meet our guidelines.
One of the most important factors is determining if the project that the condominium is located in is complete. In many cases, It will be necessary for the project, or at least the phase that your unit is located in,
to be completed before we can provide financing. The main reason for this is, until the project is complete, we can’t be certain that the remaining units will be of the same quality as the existing units. This could
affect the marketability of your home.
In addition, we’ll consider the ratio of non-owner occupied units to owner-occupied units. This could also affect future marketability since many people would prefer to live in a project that is occupied by owners rather
than renters.
We’ll also carefully review the appraisal to insure that it includes comparable sales of properties within the project, as well as some from outside the project. Our experience has found that using comparable sales from
both the same project as well as other projects gives us a better idea of the condominium project’s marketability.
I'm purchasing a home, do I need a home inspection AND an appaisal?
Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Although they have totally different purposes, it makes the most sense to rely on each to help confirm that
you've found the perfect home.
The appraiser will make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior or exterior damage that could affect the salability of the property
will also be reported.
However, appraisers are not construction experts and won't find or report items that are not obvious. They won't turn on every light switch, run every faucet or inspect the attic or mechanicals. That's where the home
inspector comes in. They generally perform a detailed inspection and can educate you about possible concerns or defects with the home.
Accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition
of the home.
When is flood insurance required?
Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. The law can't stop floods. Floods happen
anytime, anywhere. But the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 help to ensure that you will be protected from financial losses caused by flooding.
We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard
homeowner's insurance doesn't protect you against damages from flooding.
Does Suffolk Credit Union provide financing for modular homes?
Yes, Modular homes are residences constructed entirely in factories and transported to their permanent foundation on flatbed trucks. They must conform to the same local, state and regional building codes and structurally approved by inspectors as homes built on-site.
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