What All Buyers Need To Know About The Home Appraisal Process

Once you have inspected your home, the next step will be to order the appraisal. Your lender will ask you to pay for an appraisal in advance. They usually cost $450-500. This is part of the closing costs first disclosed but it’s paid in advance and you will see it on your closing statement as a credit.

Do you know what a home appraisal is, or why it’s so important for you to have? Many people misunderstand this crucial component of the home buying experience.

In a nutshell, an appraisal is a valuation of your home; it’s a way for lenders to ensure that they aren’t providing a mortgage that isn’t worth what the home is worth. Your appraisal must match or exceed the value of your loan, otherwise you’ll run into hiccups.

An appraiser is someone who uses comparable sales in your neighborhood as well as the condition of your home in order to make a sound valuation of your home. They’ll include factors both inside and outside the house.

If an appraisal is lower than the amount you thought the house was worth, there are several options, including renegotiating the deal and paying the difference. If it’s higher, it benefits the buyer. But knowing more about appraisals, whether you’re a homebuyer or seller, can help the whole process go more smoothly. Use this graphic from our friends at Title Source to get started.

Click the graphic to see a larger version.

Ali Palacios, ABR, MCNE, TAHS

Realtor

Today's Home Realty

ali.palacios@todayshomerealty.com

Mobile - 832-418-0670

Fax - 832-201-7492

www.todayshomerealty.com

www.ilovehappyclients.com

9119 Hwy 6 S #230-116, Missouri City, TX 77459

Source: http://www.bestrealestateblog.com/buyers-need-know-home-appraisal-process?m=JnojPGPgYwNqRUqKIeuc

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