After much time and research, you've done it - you've found your dream home. Now that your offer has been accepted and your lender has already pre-approved you, it is time for the home appraisal. But how much is the home worth? That’s the question at the heart of an appraisal. Home appraisals find out if the asking price is different than the actual value of the property. The value of the property will determine what the lender will loan you.
An appraisal is the expert opinion that defines the value of a property. But why is the lender so interested in the home appraisal, you may ask? A home appraisal protects the lender by using the home as collateral for the loan, making sure that their investment is indeed, worth the amount that they loan to a borrower. It also helps you not only to understand what the state of the home is, but it protects you from paying too much for a home.