A mortgage broker helps consumers get prequalified and find the best bargain when they buy or refinance their house. House buying companies calculate offers by calculating the total mortgage loan amount and then dividing this figure by the total home value. The total mortgage loan amount represents all money borrowed from banks by the home buyer; while the total home value represents all expenses such as property taxes and homeowner’s insurance. Looking to sell your home without the hassle? Check out this link: https://www.as-ishomebuyer.com/.
Here’s how these calculations are done:
Add the Down Payment and Closing Costs to Calculate a House’s Mortgage Loan Value
When looking at an asking price of a home, you will see finalized prices with the down payment, closing costs and mortgage loan value included. The total of all three will give you the asking price of the property. House buying companies calculate mortgage loan values by adding together whatever down payment amount is paid plus any related closing expenses; in other words: their offer amount is what your bank will lend as a mortgage loan.
Put the Selling Price Upon Top of a House’s Mortgage Loan Value
A home buying company uses calculations that take into account both the house’s selling price and its mortgage loan value to calculate how much they’ll offer to lend as a mortgage loan. This result is known as an offer. Once you give your deposit, this offer can either be accepted by your bank or you can wait to see if they accept it on your behalf.
Making Adjustments to a House’s Mortgage Loan Value
In some cases, the value used in calculating your offer may not match up. This could occur if a new home builder has recently finished construction of another structure adjacent to your property, leading to an unexpectedly high property valuation. When this occurs, the house buying company will adjust their offer so it reflects what they think your house is worth.
Give the Offer a Day or Two to Be Accepted by Your Bank
After calculating their offer, the house buying company will give it one or two days for acceptance by your bank. After this time has elapsed, however, if they don’t hear back from you within these specified times, the offer will be considered rejected and you may need to find another mortgage broker who can assist in purchasing or refinancing your home.