What is the Appraisal Process?
The lender vets the prospective buyer’s ability to pay back a mortgage loan. While doing this, the lender ensures that the property is worth the loan amount.
So, the mortgage company sends a real estate appraiser to assess the value of the home.
The appraiser measures the size of the property and completes an property analysis. This includes comparisons to similar properties in the area.
Also, appraisers judge the home’s integrity. This includes:
- Home Repairs
- Home Upgrades
- General Upkeep
On the outside they want to make sure that everything is operable and well maintained. The appraiser isn’t concerned with the cosmetic view of the property.
They also make note of visible health and safety hazards. Examples include broken windows or loose banisters.
What Happens if the Appraisal is Undervalued?
The appraiser compiles this information into an appraisal report. Then, they send the report to the mortgage lender.
Based on the information provided, the lender extends the loan …