By Kenneth Session
Understanding the home’s appraisal process and how it can affect your mortgage payment
H
ome appraisal is a critical step to both home buyers and sellers whether purchasing a home using a mortgage, refinancing your existing mortgage, or selling your home to anyone other than an all-cash buyer. Due to its significance, it’s important for both home buyers and sellers to understand the ins and outs of the process. According to Investopedia, a home appraisal is an unbiased professional opinion of a home’s value. For a buyer, having a home appraisal performed to confirm the sales price for the lender is a key part of getting a mortgage. On the other hand, a good appraisal is crucial to secure the best price possible for a seller’s property. Moreover, lenders require a home appraisal before they give out a mortgage simply because they are protecting their investment. Lenders have to determine that the actual market value of the property is enough such that in case you default on the mortgage, the lender will sell the property for enough money to cover the loan. How does the home appraisal process work? The home appraisal process normally kicks off after an offer has been made and the property has been inspected. Normally, the buyer pays for the appraisal costs and in most
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