Many home buyers and sellers are not aware that after an offer is made on a home, the mortgage lender will require an appraisal of the home before a mortgage commitment is provided.
The purpose of the appraisal is to assure the mortgage lender that the house is worth what the buyer has agreed to pay for it. If the home appraises at or above the agreed-upon purchase price, the loan will usually move forward. If the home appraises low, the seller may have to reduce the asking price. The appraiser will conduct a thorough assessment of the home’s interior and exterior, and compare the home to similar homes on the market. The Home Buying Institute offers this helpful article that explains the process and the items reviewed. The real estate purchase and sale process can be very complex. That’s why it’s important to partner with professionals who can guide you through it. Trust the team at Vanguard Realty Associates. We’ll be with you every step of the way.