Appraisal
When a buyer is financing a home through a bank or mortgage company the buyer can expect to pay for an appraisal. This is because lender’s will not make a loan for just any agreed upon purchase price between a buyer and seller. The property must be worth as much or more than the loan amount the lender has agreed to provide the buyer. An appraisal is a report that is provided to the lender summarizing the value of the property and how that value was determined. Each appraiser is educated and licensed in the state or states the appraiser operates in and works for a company independent of the lender. Since the credit crisis the ordering of appraisals by lenders has been randomized so a loan officer will likely not be able to tell you who is conducting the appraisal and the loan officer will have no input on the outcome of the appraisal. Once the appraisal is ordered a licensed appraiser will contact the realtor or homeowner to schedule a time for viewing the property. When the appraiser arrives at the property he or she will take photos and measurements of the interior and exterior. He or she will then notate the condition of the home, amenities, and improvements. After leaving the appraiser will analyze recent sales in the area and adjust the value of the property in accordance with those sales. When the work is complete the appraiser will provide one specific value to the lender in a written report which the buyer is entitled to view and retain a copy of, as well. |