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» Defining LTV
Posted on 10/22/2004
Defining a realistic and accurate “value” of property is where most loan applications run into trouble. Everybody who buys real estate gets a 'deal' and purchases for less than the "appraised value".
When requesting a hard money loan, for purchases, ”value” is defined as the actual purchase price of the property, not an appraised value. For refinances, value is defined by a written appraisal from a licensed real estate appraiser.
If a property is purchased for a sum and a couple of months later, an appraiser indicates a dramatic rise in value, another appraisal by a different agent may be required, unless substantial investment in improvements is demonstrated.
Posted in Miscellaneous
When requesting a hard money loan, for purchases, ”value” is defined as the actual purchase price of the property, not an appraised value. For refinances, value is defined by a written appraisal from a licensed real estate appraiser.
If a property is purchased for a sum and a couple of months later, an appraiser indicates a dramatic rise in value, another appraisal by a different agent may be required, unless substantial investment in improvements is demonstrated.
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