In a past blog post we touched on the topic of Loan to Value.
Loan to value is the amount of money that you owe on your property, divided by the amount that your home is worth.
There are many ways to determine the value of a property. Some are appraisals, and comparing other houses in the area. Tembo financial does not always require an appraisal on the home, and also uses and internal system that can give a proper valuation of the home.
Loan to value is important when applying for a loan. It can mean that certain lenders will give you the loan, and some will not.
The higher the loan to value of the property is, the harder it may be to qualify for a mortgage.
If you have questions about your loan to value and how you can qualify for a loan, call us any time!