When talking about mortgage and other loan types, which require property as the security or backup, you may have the worry about the foreclosure, right? Now, you should understand how to stop a foreclosure even before applying for the loan. Here is what you should know first before gaining info about the procedure of foreclosure and how to avoid it. How do banks calculate house prices? This question is sometimes overlooked by customers who will apply for credit with home security. Currently, if the urgent need for funds the most powerful solution is to make credit or loans to the bank.
Various banking credit facilities can be a way out. One of them is a multipurpose loan that is to guarantee an item such as a house for loan guarantees. Guaranteeing the house to the bank is not easy. Guaranteeing a home is the right choice, why? Because in addition to being occupied, the bank also tends to prefer credit with home security. On the other hand, the credit period is longer than other collateral other than home.
The procedure is also not too complicated. Submission of credits, only submit certificates and a number of requirements documents to the bank. Next, the bank will assess the house you are allowing. Furthermore, do you know how much the loan will be given to the bank with a home guarantee given? Some cases often make customers confused because the loan issued does not seem worth the cost if you build the house. To assess the house to be used as collateral, there are several ways that banks choose, such as:
1. Market Price Approach
Appraisal parties will find out information and data from similar buildings with a guaranteed house. The bank will find out the market price of several homes and look for similar data with other houses sold at similar locations.
2. Cost Approach
The bank will conduct a survey, about the price of home soil and find out information through neighbors around the house. Then calculate the price associated with the house to be pledged. For example the price of land location perimeter square house, the price of building materials, as well as predicted future price developments.