In many cases, lenders need a
professional, independent appraisal of the property you want
to buy or refinance to ensure that it is worth at least as
much as they are being asked to lend on it. If you are
making a smaller down payment and have a lower credit score,
the lender is going to be even more interested in making
sure the property that will be collateral for the loan is
worth lending the amount requested.
A professional, independent appraiser will usually visit
your home and inspect its interior and exterior. The
appraiser doesn't want to buy your home, and isn't a
visiting head of state. So whatever you do, do not postpone
the appraisal until you get a chance to "clean up a little."
Cleaning does not make your appraised value higher! And
delaying adds time to an already lengthy process.
The appraiser will form an opinion on the probable market
value of the property considering sales of similar homes in
the area among other factors. He or she will prepare an
appraisal report explaining the conclusion. The appraisal
belongs to the lender considering lending money with the
home as collateral. Often, you can receive a copy of the
appraisal either as a courtesy or in keeping with state law.
Let us know you're interested and we'll help.
The lender wants to know first of all whether the property
is worth at least as much as the loan amount. In the
unlikely event the lender would have to foreclose, it wants
to know it should be able to recoup at least the loan
amount. But if your loan program depends on your borrowing,
for example, 95 percent of the property's value and no more,
the appraisal can impact your eligibility for the loan
that's right for you. In a "close" case like that, the best
solution is almost always to increase your down payment, or
we can help find another solution such as another loan
program that works.
An appraisal can cost from $350 to $600 or more for very
complex properties. You as the borrower repay the lender for
its cost in paying the appraisal fee upon settlement of the
here to download the CFPB Home Loan
American Home Lending USA, LLC is headquartered at 230 S Buchanan
St, Ste A Edwardsville, IL 62025. Direct VA lender. Not
an agency of the federal government. Illinois Residential Mortgage
License MB.6760542, Missouri Residential Mortgage License 16-1661-A,
Licensed by the Mississippi Department of Banking and Consumer
Finance #71983. Florida Residential Mortgage License MLD906; Alabama
Consumer Credit License #21842; Georgia Residential Mortgage License
#36496; Maryland Lender License #21919; Tennessee Residential
Mortgage Licensee #117669; Colorado Residential Mortgage License;
Arkansas Residential Mortgage License #116077; Licensed by the DBO
under the California Residential Mortgage Lending Act #4131300.
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