On a purchase or refinance
Home Appraisals 101
What is it? A home appraisal is a very educated guess as to how much your property is worth.
Why are home appraisals important? No credible financial institution will lend you money for a home without an appraisal.
Who pays for the home appraisal? Usually the home buyer pays for it at closing and the cost can be as high as several hundred dollars.
How do home appraisals differ from home inspections? A home appraisal is NOT the same thing as a home inspection. Both an appraiser and inspector will walk around the house and take a good look at it (usually, the inspector comes first), but they're each at the house for different reasons. The appraiser is looking at the value of the home whereas the inspector is looking for any defects with the home that may cause you financial grief later.
How long does the appraisal process take? It used to take a couple of days but after the recession federal guidelines changed the appraisal process. so no it is more often a week or two. Underwriters can request more information about the house than they could in past years, and gathering the additional data and/or photos can take time for the seller and real estate agent, which can change the closing date.
What factors go into deciding the worth of a house? Plenty. To determine the value of your home appraisers will consider location, design quality and condition of construction, age, rooms, square footage, storage, heating and cooling, parking, the overall market, and more.
Find out how to receive your free appraisal (Limited time offer)
Mention this offer at the time of loan application and receive up to $500 towards your appraisal or closing costs! This discount will be applied towards costs at closing. (see lender for details). This is not a commitment to lend or extend credit. Restrictions may apply. Information and or data is subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Prime Source Mortgage, Inc. is an Equal Housing Lender. NMLS # 16981.