Applying for a Loan

Finding a lender
Choosing a mortgage
Shopping interest rates
Loan application costs
The appraisal process

Can I be a homeowner?

Finding a Home

Making an Offer on a Home

Inspections

The closing process

Glossary

The appraisal process

When you make an offer on a home and the offer is accepted, you will need to apply for a mortgage loan. The mortgage lender will order an appraisal from a qualified appraiser. The appraiser's job is to look at recent sales in the area and to provide a value of the property you are purchasing. This valuation helps the lender verify the home is worth as much as the buyer is paying for the property.

If the property does not appraise for your purchase amount, you may not be able to secure financing or your may need to work with your lender to change the terms of your financing.

Your real estate professional should help construct your offer to purchase to state the purchase offer is contingent on your ability to secure financing. A contract may very likely be contingent on the appraised value coming in at or above the purchase price. If it doesn't appraise at that level, the contract may be voided or renegotiated.