You have found the home of your dreams, congratulations! The paper work has been obtained and you’re hoping for a closing date soon. Your next step should be to get an appraisal in order to understand the true value of your new home, and to get a loan from the bank. So what happens when a bank requests an appraisal for a loan?
The majority of real estate appraisals are requested by mortgage companies to determine the property’s purchase price for a loan. The appraiser is your safety net against spending more on your home than it’s really worth. It’s also a safety net for the mortgage company not to lend more on a property than it’s worth.
Appraisers are there to determine a property value for its actual worth at the time of the appraisal. Appraisals protect both the lender, as well as the client, so no one overpays for a home.
According to a Yahoo article:
You will be refused a mortgage, or offered a smaller amount on the mortgage, if the appraisal falls short of the amount you wish to borrow. You will have to make up the difference with a larger down payment, or renegotiate the sale price with the seller.
So, ultimately, the appraisal is a critical factor in determining how much of a mortgage the bank or mortgage company will approve because the property you are purchasing serves as collateral for the loan.Tags: appraisal, appraisal questions answered, appraiser, Appraiser During Your Divorce, appraiser questions, buy home, celebrity real estate, comparables, does your appraiser, home appraisal, loan, loan and appraisal, mortgage, property appraisal, reason for appraisal, recommend appraiser, sell home, what is an appraisal
Categorised in: Reasons To Get An Appraisal
This post was written by Joseph Castaneda