Question about mortgage on new or preowned home

[asianthree]

We just had some friends come down to look for a home in TV..they found a great home and went to their bank for a mortgage...the mortage loan fell short of asking price by $80,000 due to the appraisal...anyone else have this issue..i know that as the build out comes near that prices are rising, but if banks will not grant the loan, I wonder if this will slow down the pre-owned sales..

[gomoho]

Have them go to Citizens in TV for their mortgage and I'll be they will have a different result. An appraisal is nothing more than a professional opinion of the value of the home - appraisers that work in TV have a much better clue.

[ROCKETMAN]

When I refinanced the appraisal was at least $30,000 less than what I know it is worth. That was on a house I know I could sell for $170,000, they appraised at $140,000. I had plenty equity so it made no difference but in some cases it will. Many people here believe most houses don't have a mortgage but employee at citizens said 60% have loans.

[ilovetv]

Send them to a lender here in TV, like Citizens First Bank here. They know the correct market values here in this unique market, doing 30 closings a day. Welcome to Citizens First Bank (http://www.citizensfb.com)

Also, buyers using a lender out-of-state has resulted in long delays before closing, sometimes 60-90 days and once, even longer in our neighborhood.

[784caroline]

If you are buying a resale home listed by THe Villages, their resale contract "used to have" a clause in it saying that any appraisal had to be performed by an appraiser located in Sumter County. The real estate market in and around The Villages is not comparable to Florida or most of the states. Dealing with Citizens will get you the appraisal you need. if you deal with an outside ..BUT LOCAL bank such as BBT, you will also get a good appraisal.

[Bay Kid]

Appraisers have become really bad since the government has taken control. My RE company in VA. has lost several sales over the past 2 years because of one bad appraisal/appraiser. They are all very low. Something needs to be done for the good of all.

[Challenger]

We just had some friends come down to look for a home in TV..they found a great home and went to their bank for a mortgage...the mortage loan fell short of asking price by $80,000 due to the appraisal...anyone else have this issue..i know that as the build out comes near that prices are rising, but if banks will not grant the loan, I wonder if this will slow down the pre-owned sales..

Appraisals are made at a point in time. Values in a small area like the Villages were there might be 100 sales or more a week can change literally by the day.Comparables that are more than a few weeks old may be significantly off the mark. Appraisers in such a market have a very difficult time and need all the local info they can get. Local banks understand this process and usualy insist on a local appraiser with a clear understanding of conditions.

My last paying job was with a bank in Maryland. I had a number of good customers move to the villages and always recommended that they find a local bank for their RE transactions. I personally went with Citizens and found them to be quite competent with a great customer service culture. I'm sure that Community Bank and other local banks are probably just as good.

[Portia]

we went to suntrust the first time and appraisal came 30,000 less went to citizens and appraisal came in at 1000.00 over what it needed to be .just cant imagine why lol.. just go to citizen and no regrets or headachs

[TomW]

Also, there is a clause in the new home TV purchase contract regarding the SEVERE financial penalties you may incur if you don't close on the day they select. This forces many to go through Citizens Wholesale Mortgage (not Citizens First Bank) because CWM guarantees they will be ready to close on your TV assigned date. I don't know if this clause is present in resale contracts.

[graciegirl]

Also, there is a clause in the new home TV purchase contract regarding the SEVERE financial penalties you may incur if you don't close on the day they select. This forces many to go through Citizens Wholesale Mortgage (not Citizens First Bank) because CWM guarantees they will be ready to close on your TV assigned date. I don't know if this clause is present in resale contracts.



Severe charge? Wait now. ANY change in your contract with The Villages results in a $250. charge. When they were building to suit if you changed any tile etc. you needed to do it at one time, because it would cost $250. Many of us think or know that is because they have so many closings and so many houses under contract that they cannot have people changing their minds and messing up the system. You aren't in Kansas anymore Dorothy. This is The Villages and they do it their way. You have a choice you know. So if you horse around and cannot get a mortgage on their schedule you will be fined.


You can buy elsewhere and not have to deal with these rules.

[tippyclubb]

Gracie in addition to the $250 the buyer will pay interest on the remaining unpaid balance from the original closing date to the actual closing date at the prime interest rate charged by Citizen's First Bank, PLUS 1 1/2%

Buyer will also pay seller water, sewer, electrical expenses, lawn and landscape expenses. The monthly amenity fees from original closing date will be charged to buyer also.

At our closing there was a mistake made of $4.00 by the closing department which would have postponed our closing date. They told us they would wave the $4.00 but I overnighted the money at my cost of $20 to ward off any potential future problems down the road.

[billethkid]

Send them to a lender here in TV, like Citizens First Bank here. They know the correct market values here in this unique market, doing 30 closings a day. Welcome to Citizens First Bank (http://www.citizensfb.com)

Also, buyers using a lender out-of-state has resulted in long delays before closing, sometimes 60-90 days and once, even longer in our neighborhood.

This has nothing to do with where the lenders are located and has all to do with the efficiency/effective of the lender having everything done in a timely manner. We used our home (not FL then) bank.....did not miss a heart beat or a deadline.

Why use a non The Villages entity/bank? Almost witout fail the rate will be 1-2 points less!!!!!!!!!!!!!!

There is no reason for any lending institution regardless where they are located to not meet the deadlines known well in advance.....NONE!!!!

btk

[justjim]

We just had some friends come down to look for a home in TV..they found a great home and went to their bank for a mortgage...the mortage loan fell short of asking price by $80,000 due to the appraisal...anyone else have this issue..i know that as the build out comes near that prices are rising, but if banks will not grant the loan, I wonder if this will slow down the pre-owned sales..

OP, when an appraisal is 80,000 short of the asking price I would seriously question if the house is well over priced. There is an over exuberance on the part of some buyers that sellers are taking advantage as TV moves toward build out. This is an example of the over exuberance.

I would advise my friend to look for a more reasonable priced house. There are plenty of them available.

[janmcn]

OP, when an appraisal is 80,000 short of the asking price I would seriously question if the house is well over priced. There is an over exuberance on the part of some buyers that sellers are taking advantage as TV moves toward build out. This is an example of the over exuberance.

I would advise my friend to look for a more reasonable priced house. There are plenty of them available.


Totally agree. I would rather find out what the house is worth before I buy, than after the closing...$80,000 is a big difference. Someone's got to put a lid on these escalating values, and perhaps appraisers are the ones to do that.

Also, totally agree with btk's previous post, after buying two new houses using outside banks and both closings went off without a hitch. Why pay a higher percentage rate for 30 years just because you fear a penalty?