A home appraisal is an important part of the home-buying process. If you're ready for this step, you may have some questions about what happens.
What is a home appraisal?
A home appraisal is a professional evaluation of the value of a property. It's typically conducted by a licensed, certified professional. The appraiser is an unbiased individual with the necessary knowledge and experience to determine the fair current value of a home.
Who pays for a home appraisal?
A home appraisal that's conducted as part of the home buying process is typically paid for by the buyer. The lender chooses the appraiser, and the buyer pays for the service as part of the closing costs.
What does the home appraisal determine?
The home appraisal is an important step in the home buying process because it lets the lender know that the loan you're seeking is appropriately valued for the home in question. If the appraiser determines that the home's value is less than the agreed-upon price, you may not be able to get a loan for that sum. Lenders require an appraisal so they know they're making a wise financial investment by providing you with a home loan.
What does the appraiser look at?
An appraiser will look at the location of the property, its overall condition, and its amenities. The appraiser may walk through the home to look for obvious health and safety code violations. The appraiser will also assess the values of comparable homes in the area. The selling price of similar properties within the last six months will determine a great deal about how your home is valued.
Is an appraisal the same as a home inspection?
No, an appraisal and a home inspection are different. An inspection is a more detailed evaluation of the home, which includes a close look at plumbing, HVAC systems, and more.
If you or anyone you know is in the market to buy a home or refinance their mortgage, please contact us at Advanced Funding Home Mortgage Loans today by phone at 801-272-0600 . We love helping clients who have been referred to us by you.