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why is property appraisal necessary in mortgage?

Anonymous
Posted on: 07th Jul, 2005 07:57 pm
why is property appraisal necessary in mortgage?
Hi Guest

Welcome to the forums.

Before approving any mortgage a lender appoints an appraiser who makes an estimate of the property value based on the features of the property and the recent sales price of similar property in the same locality. The appraiser must be certified and should make sure that the property is licensed and registered. Property appraisal helps to establish the value of property.

It checks the condition of the property and determines whether the property can be kept as a security in the mortage. The appraisal determines whether any mortgage insurance is required. However the appraisal does not guarantee that the real estate is free of any defect or code violation. The appraiser charges a fee which varies with the type of the property and other related factors.

Regards
Jessica.
Posted on: 07th Jul, 2005 10:12 pm
because the appraise report can give the lender and you a integrated and approximate money amount of you home appraised. appraise is very importan, you can link the to find more information about the appraise's importance.
"http://nyamc.com/importance_of_appraisal.htm"



[Link deactivated as per forum rule]
Posted on: 08th Oct, 2007 08:01 am
Basically no one will lend you money based on the fact that you think your home is worth X. And I wouldnt trust a banker to determine the value of my property. Appraiser is a licenced, objective, 3rd party observer.
Posted on: 09th Oct, 2007 07:23 am
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