Before you borrow money to buy a home or refinance, it’s important to know the value of your home. That’s why getting a home appraisal is part of the mortgage process for home buyers and sometimes, when you refinance. During the home appraisal process, a licensed appraiser verifies the value of the property you want to buy or refinance. Click on the video below for an overview of the appraisal during a mortgage loan.
An appraisal determines what a home is worth based on recently sold nearby homes. Since the appraisal report is based on recent home sales and home sale prices can change over time, the appraisal is only good for a limited amount of time.
An appraisal doesn’t always involve a physical visit to the home, but it always includes an analysis by the real estate appraiser of recent sales of similar nearby properties. This is to determine the true worth of the home accurately, and it is based on several different factors:
In addition to a home appraisal, homebuyers can also get a home inspection. Though it sounds similar, it is a different type of home assessment. A home inspection identifies problems and repairs the home may need, like updating out-of-code electrical wiring.
A home inspector will spend several hours evaluating and testing systems, like plumbing, electrical, and HVAC to ensure they’re up to date and work. The home inspector will give you a written report outlining what they discover. Your home purchase contract may say you can go back to the sellers and ask them to repair problems the home inspector raises.
When the appraiser finishes, Planet will share the appraisal with you. Your Planet home loan team is available to answer any questions you might have during this part of mortgage loan process.
Once you’ve finished your application and we’ve ordered your home appraisal, loan processing is the next step. Read More
Learn about the mortgage loan process, from beginning your application all the way to closing and funding your loan. Read More
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