Homebuying FAQs
An appraisal determines the value of the property you are purchasing or refinancing. National standards guide both the format of an appraisal report and who can complete the appraisal. Depending on the situation, the appraiser may examine both the interior and exterior of the home, or conduct an exterior-only inspection. After inspecting the property, the appraiser establishes a home value by comparing your home with others in the area, considering factors including home design, size, and age.
Lenders will want to verify that your home is as marketable as others in the area in the event of a sale of the home. Our team will review your home’s features and compare them to similar homes nearby to ensure the value is comparable. We will also analyze market statistics about the property’s neighborhood and determine whether home values are steady, increasing, or decreasing.
Loans are updated with the estimated value as soon as we receive the appraisal. We will provide you with a copy of the appraisal even if your loan does not close.
Appraisals are ordered after you’ve completed your application and we receive the “Notice of Intent to Proceed” with your loan. The turnaround time for the appraisal report is usually 10 to 14 days, but we are always in communication with the appraiser in the hopes of having it done as quickly as possible. Delays may be caused if the appraiser can’t reach you to schedule the inspection, or if the bank hasn’t received plans or specs for new construction or home improvement loans subject to completion.
The appraiser will contact refinancing homeowners to set up an interior inspection and communicate with either the seller or your real estate agent to view the home if you are purchasing a new property. We will provide you with a copy of the appraisal even if your loan does not close.
Because condominiums have market influences not found in single-family homes, additional steps must be taken. For one, we’ll confirm if the condominium complex is complete because an unfinished complex runs the risk of having quality differences between units. Any variation in the quality of a unit could affect the future marketability of your home. We also review the ratio of non-owner-occupied units to owner-occupied units and recent sales in the complex.
A home inspection is intended to protect you against unforeseen problems in your new home. Trained professionals can give you insights about the condition your home beyond what you can see. We encourage you to attend the home inspection, and to bring paper and pencil with you to take notes. You can ask questions of the inspector during the inspection.
Federal law requires all lenders investigate whether the home they finance is in a flood hazard area as defined by FEMA, the Federal Emergency Management Agency. Norry Bank uses a third-party company that specializes in flood map review to determine if your home is in a flood area. Homes that are in a flood zone will require flood insurance coverage to protect our investment and yours.
Norry Bank considers manufactured housing to be units that are factory built with a steel undercarriage that remains a structural component and limits the structure to a single story. “Mobile home” is another term for manufactured housing. Other factory-built housing such as modular, prefabricated, panelized, or sectional housing is considered single-family homes with Norry Bank.
To qualify for our loan programs, a manufactured home must meet the following requirements:
- A manufactured home is any dwelling built on a permanent chassis and attached to a permanent foundation system.
- It must be a one-family dwelling that is legally classified as real property.
- The towing hitch, wheels, and axles must have been removed, and the home must be permanently attached to a foundation system that meets state and local codes as well as the manufacturer’s requirements.
- The foundation system must be appropriate for the soil conditions for the site and meet local and state codes.
- The land on which the manufactured home is situated must be owned by you. We do not provide financing for manufactured homes located on rented or leased land.
- It must have been built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established in 1976. Generally, compliance with these standards will be evidenced by the presence of a HUD Data Plate that is affixed near the main electrical panel of the home or in another readily accessible and visible location.
- It must be at least double-width, 24 feet wide, and have a minimum 600 square feet of gross living area. It also must be acceptable to typical purchasers in the market area.