8/7/2023 0 Comments Do home appraisers come inside![]() ![]() Sellers also don’t want the appraisal to fall through because it usually means they won’t get as much money as they were expecting for their home. The silver lining of a low appraisal for borrowers is that they aren’t paying more than the house is worth, which can help with price negotiations. Lenders only want borrowers to borrow what they need because the home is the collateral for the loan, meaning if lenders loan more than what the house is worth, they would lose money if the borrower defaults on the loan or faces foreclosure. The appraisal affects the mortgage loan application of the buyer (or refinancer), not only because it’s part of the application process, but because if the appraisal comes in below the contract price, the loan transaction is interrupted and borrowers no longer qualify for that amount. How it works for buyersĪs one of the first steps of the closing process, lenders will order the appraisal while the borrower pays the appraisal fee. The report should have pictures of the home, any data or records used to evaluate the market or area, etc. The home must be visually inspected, both inside and outside appraisers look at the overall appearance and quality of the home, the number of bedrooms and bathrooms, the functionality of the layout and floor plan, the square footage, if repairs are needed, and any amenities the home offers. ![]() ![]() They have the responsibility to create a report that considers the home itself and outside factors such as the current market trends, the area the home is located, recent sales of similar homes, etc. Qualified appraisers will be licensed or certified and also be familiar with the area to form an accurate assessment of the home. It requires an unbiased and professional opinion on the value of a home, specifically when a home is being bought, sold, or refinanced through a mortgage. What Is a Home Appraisal?Ī home appraisal is the primary way for someone to calculate the value of their home. Once the appraisal process is completed, there are a couple of scenarios that buyers and sellers can expect. Sellers, buyers, and refinancers should all be familiar with appraisals and how they fit in the homebuying/selling or mortgage process. ![]()
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