Cottonwood-Sedona-Cornville, Arizona Real Estate
Lenders – use your credit report to determine whether or not you qualify for a loan. In some cases, it can affect the interest rate you are charged.
Insurance Companies – use your credit report to establish your rates and premiums.
Employers – with your permission, use your credit report as a consideration in hiring.
Telephone and Utility Companies – review your credit report prior to providing service.
Landlords – take your credit report into consideration when deciding to rent to you.
MORTGAGE ACRONYMS regarding value…
Your LTV or Loan To Value is the percentage of what you owe on
your home compared to the value of your home.
If you write a contract to buy a home for $100,000
(AND, it appraises for $100,000)
AND, you are putting down $20,000
Then you will finance $80,000
Therefore, your LTV is 80%
FYI… the LTV is calculated with the LESSER of the Appraised
Value OR Sales Price!
Not Just for the Experts!
An AVM or Automated Valuation Model is an estimate of value
for a specific property. Unlike a traditional full appraisal, an
AVM is completely statistically based and uses a computer program
to compare sales, property characteristics, tax assessments,
and price trends. It is often used in conjunction with a
A BPO or Broker Price Opinion is completed by a licensed real
estate professional. Similar to a full appraisal, the subject property’s
characteristics is compared to that of currently listed and
recently sold properties.