Appraisal and Loan Documents

Once the inspection is completed, insurance binder ordered, and any necessary repairs negotiated, the lender will order an appraisal.  The appraisal is a market evaluation of the property to determine whether the negotiated purchase price is in line with the current market value of the home.  In addition, the appraisal will include a basic inspection of the home, such as the condition of the roof, siding, and interior features.  The appraiser will compare the value of the home in its current condition with other homes in the area that have recently sold.

The appraisal is conducted in order to satisfy the lender that their investment in the property is a sound one.  Should the appraisal value not support the negotiated purchase price, you have legal grounds to renegotiate the purchase price or back out of the contract and have your earnest money refunded to you.

During this time, your lender may request additional documentation from you that will be required in order to finalize the loan approval process.  It is CRITICAL that you provide your lender with any requested information or documentation as soon as feasibly possible to ensure that the sale transaction will close on time.