In many cases, lenders need a professional, independent appraisal of the property you want to buy or refinance to ensure its value. If you are making a smaller down payment and have a lower credit score, the lender is going to be even more interested in making sure the property that will be collateral for the loan is worth lending the amount requested.

A professional, independent appraiser will usually visit your home and inspect its interior and exterior. The appraiser doesn't want to buy your home or live in your home. So do not postpone the appraisal until you get a chance to "clean up a little." Delaying adds time to an already lengthy process.

The appraiser will form an opinion on the market value of the property looking at sales of similar homes in the area, among other factors. He or she will prepare an appraisal report showing these comparisons. The appraisal belongs to the lender considering lending money with the home as collateral. Often, you can receive a copy of the appraisal either as a courtesy or by requesting it in writing within 90 days of the loan closing

The lender wants to know what the property is worth. In the event the lender would have to foreclose, they want to know if they will be able to sell it for at least the loan amount. But if your loan program depends on your borrowing, for example, 95 percent of the property's value and no more, the appraisal can impact your eligibility for the loan. An appraisal can cost from $300 to $400 or more. In some cases a borrower and the property may qualify for a property inspection waiver (no appraisal).

BACK TO FAQ

Purchase,  Refinance, Debt Consolidation,  Calculators,  Get Pre-Approved,  Commercial,  FAQ (& Some Good Things To Know),  Live Support,  About Us,  Contact Us