1st Florida Lending Corp., a registered Mortgage Lender
Orlando servicing only the State of Florida, offering over
48 loans programs including Conventional Loans, Non-
Conforming Loans, FHA Loans, VA Loans, USDA Loan,
Self-Employed Loans, Bank Statement Loans, No-Doc
Loans, Reverse Mortgage Loans, ITIN Loans, Rental
Investment Loans, to name a few and specializing in
Bank Statement Loans or “stated loans” requiring no Tax
Return verification and much more. * No broker or
lender fees are for FHA,VA, USDA and Conventional
loan types
Main Office: 2151 Consulate Dr. * Suite 8 * Orlando,
FL., 32837 * Telephone * (800)856-7097 * (800) 655-
1345 * (407) 300-2558 * Fax (877) 401-9955
* Disclaimer: All Loan programs, rates and terms can
change without notice and are subject to credit and
underwriting approval. Loan charts highlight min/max
constraints, assumptions & random scenarios only. We will
always work hard to approve your loan but there are no
guarantees of any kind expressed or implied that any loan
we be approved. Licensed in Florida Only. When Banks
Say No ! We Say YES ! ® is a registered trademark owned
by 1st Florida Lending Corp. Florida lender license #
MLD106.
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Appraisals
Florida’s Top Rated Mortgage Lender
A+ BBB RATED I 48 loan programs
What is an Appraisal?
An Appraisal is an estimate of a
property's fair market value. It's a
document generally required
(depending on the loan program) by
a lender before loan approval to
ensure that the mortgage loan
amount is not more than the value of
the property. The Appraisal is
performed by an "Appraiser" typically
a state-licensed professional who is
trained to render expert opinions
concerning property values, its
location, amenities, and physical
conditions.
Why get an Appraisal?
Obtaining a loan is the most
common reason for ordering an
Appraisal, however there are other
reasons to get one:
Contesting high property taxes
Establishing the replacement cost
for insurance purposes
Divorce settlement
Estate settlement
Negotiating tool in real estate
transactions
Determining a reasonable price
when selling real estate
Protecting your rights in an
eminent domain case
A government agency
requirement
A lawsuit
What are Appraisal Methods?
There are 3 common approaches, or
Appraisal Methods, used by
Appraisers to establish property
value. After thorough exercise of all
3, a final value estimate is
correlated. When evaluating single-
family, owner-occupied properties,
the Sales Comparison
Approach is heavily weighted by
an Appraiser.
Cost Approach – A formula is used
to obtain the property value: Land
value (vacant) added to the cost to
reconstruct the appraised building
as new on the date of value, less
accrued depreciation the building
suffers in comparison with a new
building.
Sales Comparison Approach – The
Appraiser identifies 3 to 4
comparable comps recently sold
properties in the neighbourhood,
ideally, sold in the previous 6
months and within ½ mile of the
subject property. A comparison is
done between the recently sold
properties and the subject property
including square footage, number
of bedrooms and bathrooms,
property age, lot size, view, and
property condition.
Income Approach – The potential
net income of the property is
capitalized to arrive at a property
value. Capitalization is the process
of converting a future income
stream into a present value. This
approach is suited to income-
providing properties and is used in
conjunction with other valuation
methods
Who owns the Appraisal?
The mortgage company owns the
appraisal even though the borrower
paid for it. This is because the
mortgage company orders the
appraisal on the borrower's behalf,
and the Appraiser lists that mortgage
company on the report. The
borrower does have the right to
receive a copy; however it's the
mortgage company's discretion to
give the borrower the original
appraisal report.
Can Another Mortgage Company
be Used After the Completed
Appraisal?
Yes. In most cases you will not have
to pay for another appraisal if you
change your mortgage company,
and depending on the loan program
typed, the first lender can transfer it
to the new lender. Some appraisal
firms may charge a small fee
because additional clerical work is
required to reflect the new mortgage
company; this is called an "Appraisal
Retype Fee". The original mortgage
company has the right to refuse to
transfer the appraisal to another
lender. In this case, a new appraisal
is needed.
Who determines the market value
of a property?
The property seller sets the price,
especially for residential property,
not the Appraiser. Sellers usually
don't order an appraisal because
they want to obtain the highest price
for their home and therefore don't
want to be bound by the Appraiser's
assessment. The real estate agent
receives a percentage of the price as
compensation and often represents
the seller in the transaction and
assists them in setting the sale price.
They perform a Comparative Market
Analysis (CMA), which real estate
agents in most states are allowed to
perform without an Appraiser's
License or Certification. The CMA is
vital to the agent’s preparation for a
listing examining recent property
sales in the neighborhood to arrive at
a listing price. Typically the agent will
suggest a price to the seller based
on the CMA however the seller may
choose to list their property for a
higher price.
How can I assist my Appraiser?
It's to your advantage to help the
Appraiser perform the assessment
by providing additional information:
What is the purpose for the
appraisal?
Is the property listed for sale, and if
so, for what price and with whom?
Is there a mortgage? And if so,
with whom, when placed, for how
much and what type (FHA, VA,
etc.), at what interest rate, or other
type of financing?
Are any personal properties or
appliances included in the
property?
With an income-producing
property, what is the income
breakdown and expenses for the
last year or two? A copy of the
lease may be required.
Provide a copy of the deed,
survey, purchase agreement, or
additional property papers.
Provide a copy of the current real
estate tax bill, statement of special
assessments, or balance owed on
anything, i.e. sewer, water, etc.