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Process

Appraisal

A professional assessment of a property's market value conducted by a licensed appraiser. Lenders require an appraisal before approving a mortgage to make sure the home is worth at least as much as the loan amount. If the appraisal comes in lower than the purchase price, you may need to renegotiate the price, make a larger down payment, or the deal may fall through.

Why It Matters

Appraisal is one of the steps you will encounter on the path from house hunting to holding the keys. Knowing what to expect at each stage reduces stress and helps you make better decisions under time pressure.

Stay organized and communicate proactively with your real estate agent, lender, and other professionals involved in appraisal. Delays and misunderstandings at any step can push back your closing date or cost you money.

Related Terms

Fair Market ValueAssessed ValueUnderwritingLoan-to-Value Ratio (LTV)

Tools That Use This Concept

MMortgage Payment CalculatorMAffordability CalculatorMClosing Costs Guide
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