What You Need to Know About Home Appraisals

You may look at a dozen houses or more before you find that perfect space that you want to call your own. After you finally have a signed contract in place on a house that you love, you may be eager to finalize the purchase and start moving in. However, there are a few important steps that must be taken before you can sign the closing documents and pick up your keys. One of these steps is the completion of a home appraisal.

The Importance of a Home Appraisal
If you are like many other buyers today, you are taking out a mortgage to pay for your next home purchase. All lenders require the completion of an appraisal in order to verify the property’s value. An appraisal includes data that supports the valuation, including comparable data on similar sales in the area. Generally, a lender will base its final loan amount on the lesser of the sales price or the appraised value. This means that the appraised value can directly impact the final loan amount that you are approved for.

The Appraisal Process
In most cases, the lender will order the appraisal. The appraiser will need access to the interior and exterior of the property to complete an on-site inspection. He or she will then thoroughly analyze market data to arrive at an appraised value. In most cases, an appraisal can be completed within approximately a week. However, the workload of appraisers in the area, the appraiser’s access to the property and even the ease of finding comparable data can impact this timeline. After the lender receives a copy of the appraiser’s report, an in-house review process will be completed.

Learn More Today
Are you ready to get serious about your home-buying plans? At MortgageDepot, our loan reps are available to answer your questions about the mortgage process. For more information or to get started with the prequalification process, contact MortgageDepot today.

Connect with one of our loan consultants to learn more.