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A
professional, independent appraiser will usually visit your home
and inspect its interior and exterior. The appraiser doesn't
want to buy your home, and isn't a visiting head of state. So
whatever you do, do not postpone the appraisal until you get a
chance to "clean up a little." Cleaning does not make your
appraised value higher! And delaying adds time to an already
lengthy process.
The appraiser will form an opinion on the probable
market value of the property considering sales of similar homes
in the area among other factors. He or she will prepare an
appraisal report explaining the conclusion. The appraisal
belongs to the lender considering lending money with the home as
collateral. Often, you can receive a copy of the appraisal
either as a courtesy or in keeping with state law. Let us know
you're interested and we'll help.
The lender wants to know first of all whether the
property is worth at least as much as the loan amount. In the
unlikely event the lender would have to foreclose, it wants to
know it should be able to recoup at least the loan amount. But
if your loan program depends on your borrowing, for example, 95
percent of the property's value and no more, the appraisal can
impact your eligibility for the loan that's right for you. In a
"close" case like that, the best solution is almost always to
increase your down payment, or we can help find another solution
such as another loan program that works.
An appraisal can cost from $200 to $500 or more for
very complex properties. You as the borrower repay the lender
for its cost in paying the appraisal fee upon settlement of the
loan.
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