Understanding Residential
Real Estate Appraisals
A critical component to buying a home is the appraisal. An appraisal is a third-party professional evaluation of the value of a property that is used to help determine the amount of a loan.
In compliance with government regulation, appraisers hired for a mortgage transaction on a conforming loan are chosen from a pool of qualified appraisers at random. Neither the borrower nor lender have the flexibility of deciding which appraiser will inspect your home.
Mortgage Loan Process
Step:1 Documentation
Step:2 Appraisal
Step:3 Underwriting
Step:4 Conditional Approval
Step:5 Clear To Close
Step:6 Closing
Please feel free to contact us at any time if you have any questions about your loan status or next steps in the process.
Appraisals 101
- Appraisal process: The appraiser will visit the property and evaluate its size, condition, location, and other factors that can affect its value.
- Appraisal report: After completing the appraisal, the appraiser will provide a written report that includes the estimated value of the property and the reasoning behind the appraisal.
- Purpose of appraisal: Residential real estate appraisals are typically required by lenders when a borrower is applying for a mortgage. The appraisal helps the lender determine whether the property is worth the amount the borrower is requesting to borrow.
- Appraisal cost: The cost of a residential real estate appraisal varies depending on the location and size of the property, as well as the complexity of the appraisal. The borrower is typically responsible for paying for the appraisal, which can range from a few hundred dollars to several thousand dollars.
It’s important to understand the appraisal process and the factors that can affect a property’s value when buying or selling real estate. A thorough appraisal can help ensure a fair and accurate valuation of the property.
