Magnificently Built Modular Homes
Now that it is spring, more and more homeowners are reviewing their new home options. For many this includes considering building a new home. There are two options when it comes to new construction: traditional site-built construction or modular construction. When considering modular construction, the question often arises about how modular homes appraise compared to traditionally-built home. The answer is simple; the modular home appraisal process is the same as that of traditionally built homes.
In order to qualify for a home loan, the home you want to buy, or build, needs to be appraised. The appraisal is the estimated amount you can expect to pay for your new home. When building a new home, you need a licensed professional appraiser. But how is the home appraised if it is not yet built?
The modular home plans are reviewed by the appraiser to determine how much it should cost you to build your new home. Labor rates, materials costs, and local depreciation and appreciation are all figured into the appraisal. Also, sales comparisons, prices and values of local similar homes are also used to determine the current value.
Once this analysis has been completed, a report is put together and sent to the mortgage company in order to initiate the mortgage process.
All of the above will determine the current total value of the new property. Many modular home builders have relationships with mortgage companies who are familiar with the process. So if you are considering modular construction, your modular home builder can help you along with your mortgage initiation process as well as the appraisal process. For more information, contact Avalon Building Systems.