The US has been pulling out of the recession slowly and banks are now more conservative than the post-recession times. Gone are the "no-doc' loans, easy money programs, and quick loan programs. Today's mortgage lenders are methodical and approach each loan with strict guidelines to insure that they have the ability to resell those mortgages to the secondary market. Most of the conventional loans are resold. Therefore, today's mortgage loans must fit within the Fannie Mae/Mac's criteria.
What does this mean to the consumer? It is ever more important today, to price a home within the range of what a home will appraise when a buyer is using bank financing.
The conventional CMA (Comparable Market Analysis) is still a helpful tool in understanding the market swings; but an appraisal will pin point what the bank will actually loan against the value of the property. Realtors will use a CMA study to gauge the market trends and it is an excellent start when pricing your property. Yet to insure that same property will carry a bank loan, the appraisal process is superior. Banks are basically become the key to today's home ownership.
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