This is a great time to dive into the home ownership pool if you’ve never owned a home and have a steady income. One big part of the home purchase process is the appraisal. A home appraisal is required to get your loan and typically the lender will only loan you somewhere between 80 to 90% of the appraised value of the home.
Lenders have their own licensed real estate appraisers who will come to the property and do the assessment. The appraisal is actually an arbitrary opinion but it is based on a complex set of criteria.?
If your property appraises for less than the purchase price then you may not qualify for the loan amount that you need and you’ll have to come up with the balance on your own. If the appraisal comes in where you need it to or even higher then you’re in the clear and the purchase should go through as planned.
Sometimes you will get an appraisal that seems too low, in this situation you can ask your lender if there is another licensed real estate appraiser that they would be willing to have look at the property. In some cases this can solve the problem and the second appraisal may come in in the price range you need it to so you can get your loan.