The Appraisal of Your Home
An appraisal of your new home will help ensure that its fair market value reflects the amount you've agreed to pay.
An appraisal is a report that states the value of a property based on the sales price of similar homes in a specific area, at a specific date and time. The appraisal is not only for the house itself, but includes all the other permanent structures along with the land upon which the house was built.
Market Analysis and Appraisal Report
By completing a market analysis, your realtor may assure you that the property is reasonably priced, but an appraiser's report is much more detailed and will "officially" protect you from purchasing overpriced real estate.
An appraiser will call to make an appointment for a visit to the property. When the appraiser contacts you or your realtor, offer to supply information about the "subject" property, such as the square footage of the home, the number of bedrooms and baths, the year the house was built, and the square footage of the lot. Giving the preliminary facts upfront allows the appraiser more time to evaluate the comparable properties in the area.
Your mortgage underwriter reviews the appraisal information with other documentation you have provided.
"Fair market value" means the buyer and seller of a property are knowledgeable and comfortable with its estimated worth. The appraisal of your home provides a professional assessment of its current market value, protecting you from purchasing overpriced real estate.
Complete Homebuyer's Mortgage Guide
Minimum and Maximum loan amounts apply. Rates and programs subject to change at any time. Loans subject to borrower qualifications, property evaluation and credit approval. All rates and program guidelines subject to change without notice based on consumer eligibility and marketing conditions. All loans subject to credit approval and compliance with underwriting standards.