Educator Mortgage Program

Knowing the difference between appraisal value and market value is necessary for people buying homes. It helps them understand the real estate field better. These words stand for different parts of a home's money value and are very important in the process of buying a house. Appraisal Value: Property worth is the estimated monetary value determined by a certified appraiser who considers factors like property quality, size, and features, along with comparable sales in the vicinity. This appraisal establishes a fair price for buying or selling. Home Lenders verify property values to align with the loan amount. Overall, property worth provides a crucial measure for lenders to determine lending amounts. Market Value: Market value is the agreed-upon price between a buyer and seller in an open market, influenced by current market conditions, demand, and property appeal. Unlike appraisal values, it reflects buyer willingness and seller expectations, susceptible to changes based on financ

What is a Construction Loan and how does it work? A home construction loan is a brief, higher-interest loan used to finance the construction of a residential building. Construction loans typically have a one-year term. Within that period, the building must be finished, and an occupancy certificate must be issued. ●      The borrower submits financial information, plans, and project schedules in order to apply for a construction loan. ●      After receiving approval, the borrower begins to draw money for each stage of the project, usually only paying interest while it is being built. An appraiser or inspector evaluates the build as it progresses to approve more funding. ●      Once the building is complete, the borrower often converts the loan into a permanent mortgage and starts making principal and interest payments. Construction loans typically have variable interest rates that fluctuate with the prime rate. Loan rates for construction projects are frequently higher than