What is Appraisal?
An appraisal is an independent professional opinion of a home's market value, ordered by the lender to ensure the property supports the loan amount.
An appraisal is an independent estimate of a property's market value performed by a licensed appraiser. Lenders order it during the mortgage process to confirm the home is worth at least the loan amount. Borrowers pay for the appraisal, and the report can affect loan approval and how much they can borrow. Watch for appraisals that come in lower than the purchase price, creating an appraisal gap that may require more cash or renegotiation. Appraisal timelines vary, and you generally cannot choose the appraiser. If you disagree with the value, you may be able to request a reconsideration of value with supporting data.
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