Mortgages are an excellent alternative for prospective homebuyers and homeowners to finance home purchases or refinance existing home loans. However, mortgage lenders usually have different criteria for borrowers to meet before lending a mortgage.
Typically, most mortgage lenders require you to appraise your home by a professional appraiser before they can approve a mortgage for purchase or refinancing.
Here are some of the common questions asked as well as answers to these questions to keep you informed.
Why is home appraisal a criterion for mortgage lending?
In mortgage lending, the lender uses your home as collateral for approving the mortgage, which gives them security and an ownership interest in the property.
Before taking the collateral, however, they need to be confident that the home has enough value to guarantee the mortgage. A home appraisal carried out by a professional is the best way to evaluate the house's value.
What is a home appraisal?
A home appraisal is an impartial report of the value of your home based on different factors such as current market trends, recent sales data of similar homes, and specific details of the house.
Usually, a home appraisal is carried out by a state-licensed and certified professional appraiser to evaluate homes and determine their fair market value.
Do I need to hire an appraisal company for my home appraisal?
Mortgage loans are secured loans, and mortgage lenders always ensure they limit the risk of loss by knowing the actual market value of a home before they approve the loan.
Appraisal companies have experienced, state-certified appraisers who are knowledgeable about home appraisals and will provide an unbiased report of the home's value which will determine if the loan will be approved and how much the lender will approve.
With offices within Anne Arundel and Prince George's County, Washington D.C, Baltimore County, Montgomery County, Virginia, Arlington County, and their environs, we are the best appraisal company to entrust with your home appraisal.