Borrowers could be in line for a credit that saves them big time.
- Mortgage borrowers are often forced to spend a lot of money on closing costs.
- United Wholesale Mortgage will credit borrowers up to $600 for appraisal costs through the end of March.
Buying a home is a costly prospect. Not only do borrowers have to come up with money for a down payment, but they also have to fork over a series of fees — known as closing costs — to finalize their mortgages.
But one mortgage lender is now taking steps to help ease that burden. And it could spell relief for borrowers in the near term.
A credit for appraisal fees
Mortgage rates have started off the year higher, making buying a home even more expensive. Throw in closing costs, and it’s no wonder so many buyers deplete their savings on the road to owning a place of their own.
Now, United Wholesale Mortgage is offering borrowers a chance to snag a $600 credit for their appraisal fees through March 31. The goal is to kick-start mortgage activity, which may grow increasingly sluggish as rates continue to climb.
Home appraisals are a standard part of the closing process. During an appraisal, an independent professional comes in to assess a home’s features and condition. Based on that, and the general state of the local housing market, an appraiser will then assign a value to the home.
Mortgage lenders need reassurance that the homes they’re loaning out money to buy are worth enough to cover those loan balances. So if a borrower is seeking a $250,000 mortgage, the home in question will generally need to appraise for at least that much. That way, if the borrower defaults on their loan, the lender can sell the home to get repaid.
It’s common practice for borrowers to cover the cost of their home appraisals. So the $600 credit from United Wholesale Mortgage might help make the entire home-buying process more affordable for borrowers who can take advantage of that savings.
Other ways to save on an appraisal
Right now, this appraisal credit is unique to United Wholesale Mortgage. But borrowers who are working with other lenders might still have options for lowering their costs.
For one thing, borrowers …….