Appraisals: Who's to Blame for Low Estimates? Who exactly IS at fault when an appraisal comes to a less-than-desirable valuation? And what IS a home appraisal based on?

Appraisals are typically handled through a title company and appraisers are often selected from a network of appraisers with which the title company is affiliated. They’re an unaffiliated third party. Often times, there’s confusion because the homeowner is informed about the cost of the appraisal by the mortgage company/banker, when actually there is no mutually beneficial relationship.

So if an appraiser sets a value on your home that comes in too low to move forward with the home loan, the mortgage company nor the mortgage banker can benefit in any way.

So Who's to blame? Unfortunately there’s no real person to yell at. The current nationwide trend of decreasing home values is to blame. Right now, home values in some locations are appraising at 40% under the price at which they initially sold.

Have you had an appraisal done on a property you own that you thought was extremely low or off-base? Sound off. Tell us about your experience by using the comment link below. Your email address will never be shared on this site to protect your privacy.

Mortgage Help: Talk is Cheap

With foreclosures and bankruptcies soaring nationwide, both government and private industry have been promising help to homeowners. But is that help materializing? Money Editor Stacy Johnson explains in this short (1:39) video…

If you have questions about Hope Now, or other help that may be available to you, please leave us a comment below, we'll either answer your question here, or get back to you directly with an answer if your situation requires additional information before we can answer your question properly.

As we pause to reflect the season, we would like to wish you and your family a very happy holiday. Thank you for being a part of our blog family this year! We are taking a couple of days off now to spend with our families, and will resume posting more great information for you here in a couple of days.

May the spirit of Christmas bring you peace,
The gladness of Christmas give you hope,
The warmth of Christmas grant you love.
-Author Unknown

Please enjoy our Christmas Video Card….

See you soon!

Low Credit Score Home Loans

For the most part, you can obtain a home loan with fair credit. In some cases, you may even be able to get a low rate. Unfortunately, if your credit score falls below 500, homeownership may be impossible. Even with a credit score below 600, your loan options are limited. It's important for anyone contemplating buying a home to improve their credit rating.

Lenders will carefully review your credit report and score before approving your mortgage. Late payments, collection accounts, excessive debts, and inquiries contribute to having a high or low credit score. Mortgage rates are based on credit rating. Therefore, if you're hoping to get a great mortgage rate, which equals lower monthly payments, now’s the time to improve credit.

Save Enough Money for a Down Payment

Because it's difficult for hard-working people to save money for a down payment and closing costs, various loan programs will incorporate fees into the total loan amount. However, if you have bad credit, a down payment can improve your chances of getting approved for a home loan.

The ideal down payment is 20% of the home price. However, lenders are willing to accept smaller amounts. If possible, attempt to have a down payment of at least 3% to 5%. Aside from boosting approval chances, a down payment may help you secure a lower rate.

Use the Right Lender for a Bad Credit Loan

To obtain the best mortgage loan with a low credit score, you need to use a sub prime or high risk lender. Some traditional lenders offer sub prime loans. However, choose a lender that specializes in bad credit loans. You may obtain better rates with a bad credit mortgage lender.

If you have any questions about low credit score home loans, please use the comment link below to ask. Your email address will never be published here.

Money Related Gifts For Kids

Teach your kids a lesson in frugality with these educational, money related gifts. Money Editor Stacy Johnson explains..(video runs 1:22)…

And for you last minute shoppers, some of these ideas might be a quick problem solver for you, and some could last a lifetime!