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What Is an Appraisal?
Your lender requires an appraisal before they'll fund your mortgage. Here's what the appraisal process looks like, why it matters, and what to do if the home appraises lower than expected.
Video coming soon
The key takeaways are below in the meantime.
Written by Bri Bond-Erwin
Key Takeaways
- An appraisal is an independent assessment of a home's market value, required by most mortgage lenders
- A licensed appraiser visits the home and compares it to similar recently sold properties
- The appraised value determines the maximum loan amount the lender will approve
- If the appraisal comes in below the purchase price, it creates an "appraisal gap" that needs to be resolved
- Options when there's a gap: renegotiate with the seller, cover the difference in cash, or request a reconsideration of value
- The appraisal protects both the buyer and the lender from overpaying for a property
Transcript will be available when the video is recorded.
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