Buying A House Appraisal at Buying

Buying A House Appraisal. Some buyers are reluctant to order an appraisal because of the expense. Lenders use home appraisals when making decisions on mortgages and home loans.

An appraisal ensures that the buyer pays a fair price and protects the mortgage lender against potential losses. The appraisal happens sometime between the time the home goes under contract and the projected close date. An appraisal is an unbiased professional opinion of a home's value and is used whenever a mortgage is involved in buying, refinancing, or selling that property.

A Man's Home Is His Castle, Right? • Birmingham Appraisal Blog

This is because the lender wants to know that the loan collateral (the house) is worth at least the amount they are lending you. Insurance companies may consider home appraisals when confirming the characteristics of a home for a new policy or to review features of the home for an insurance. Ultimately, the appraisal is a worthwhile investment; A home appraisal is a process through which a real estate appraiser determines the fair market value of a home.