Here’s what an appraisal is and why it’s so important to get one.
What are appraisals, and how are they crucial to the mortgage loan process? An appraisal is a verification of information about the property that the bank orders on your behalf. It’s about a 17- to 24-page document about the home you’re interested in buying. It will identify its characteristics and how they relate to houses that have recently sold in that area.
Why is it necessary? It will verify whether or not you’re paying too much for the property and making a bad investment. It will also protect the bank from overextending on that home’s value. Finally, it will identify any potential health, safety, or cosmetic issues with the house. All this protects both you and the lender.
If you have further questions about appraisals or the lending process, please reach out via phone or email. We would love to help you.