Real estate appraisal and mortgage guarantee
Do you know what a home equity appraisal is for?
When we go to buy a house and we don’t have all the money it costs, we ask for a loan. But not a normal credit, but a mortgage or mortgage credit.
How is a credit different from a mortgage?
A mortgage is a loan whose guarantee is the very good that it is destined to buy.
Let me explain: when you go to buy a house, the very house you buy serves as collateral for the loan you ask for. For this reason, in the hardest years of the crisis, many people lost their homes, because the home served to guarantee the credit with which it was paid; and not being able to meet the quotas, people lost their houses.
But, then, is it good to ask for a mortgage to buy a house?
Well, good or bad, I can’t say … But the truth is that if you don’t have enough money to buy your house, you won’t have many more outlets …
To respond to a loan of that volume, any bank will ask you for a guarantee, even if you are an official.
The endorsement does not have to be the home that you are going to buy, it could be that your parents or siblings endorse you or that you endorse with another property you have (rustic properties, other homes, etc.) But the common thing is that, when you go to buy your first home, you do not have any other property and that your family does not have enough possibilities to guarantee you; therefore, you will have no choice but to apply for a mortgage.
The real estate appraisal for mortgage guarantee
As the house that we are going to buy is the guarantee that supports the loan that we request, the bank has to make sure that indeed, that house that it is going to finance is worth the amount that we request. Well, in the worst case scenario, if he had to seize it, he must have the guarantee that he will get the money he gave you back.
Basically the appraisal is a check.
For this reason, generally, banks usually send appraisers they trust to evaluate homes, as they are very interested in having this work done in a thorough way. At the end of the day, in case everything goes wrong and they end up foreclosing the house, they want to have the guarantee that when they sell the house, they will get the money back.