Tip #13: A Mortgage Appraisal

A Mortgage Appraisal

If you are purchasing a home, you will either pay all cash or take out financing from a Bank. Whether the Bank you choose is Wells Fargo, Chase, Capital One, Quickent Loans, Bank of America or some other enterprise, every lender will require an appraisal for your property to verify the value of the loan.

For example, if the purchase price of a property is $1 million and you are financing 90%, the bank will want to verify the price you are paying is actually in line with the value of the home.

An independent appraiser will evaluate the property, view comparable listings and confirm the value.

If the value matches the purchase price, the bank will lend the full amount. If there is a discrepancy, the bank will only loan based on the appraisers value of the property.

In the latter case, if you are paying more than the property is worth, it is imperative that you have a mortgage appraisal contingency in your contract of sale. If not, you will be responsible for coming up with this cash difference out of pocket at the closing table.

As an experienced and trusted Broker, I advise all clients to have a mortgage appraisal contingency in their contract if we deem this is truly necessary. The goal is always to protect the client and bring all matters to their attention.

If you are looking to purchase an Apartment and need a trusted Broker that you can work with, please contact us at garayrealestate@gmail.com