Chris Pedison - Mid America Mortgage, Inc.

Mid America Mortgage, Inc.

  • About Us
  • Blog
  • Resources
    • First Time Home Seller Tips
    • First Time Home Buyer Tips
    • What to Expect at Closing
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Pre-Qualify
  • Reviews
    • My Zillow Reviews
    • Yelp Reviews
    • Our Google Reviews
    • Testimonials
  • Contact
You are here: Home / Home Appraisal

Home Appraisal

What is the purpose of a home appraisal?

A home appraisal is generally required by the lender in order to establish that the value of the home will be sufficient collateral for the amount of the loan. The appraisal fee is generally paid by the buyer, sometimes required at the time of the loan application but typically paid at the loan closing. home appraisal

A home appraisal is done by an independent appraiser who will generally visit your home and inspect the interior and exterior. However, the appraiser is not performing the same service as a home inspection. Generally, the cleanliness of the interior will not add to or diminish the appraisal value. The appraiser considers many other factors, beyond the inspection, to establish the fair market value, such as comparable values, historic sales and market demand for that area.

Market values fluctuate over time and also vary from neighborhood to neighborhood, causing appraisals to become outdated. Lenders will require a new appraisal if any refinancing is done, and tax assessors generally re-assess property annually. The value established by your bank loan appraisal will not change the assessment set for property taxes as county tax assessors do their own property evaluations.

In either case, the home buyer should monitor the appraisals for fair treatment in relation to similar houses in the surrounding area and in view of the standards set for appraisers by state licensing boards. For tax purposes, there is often a protest deadline. In the case of a loan, the buyer should be comfortable with the appraisal before committing to a firm offer and before the loan closes. Any concerns or complaints should be brought to the attention of the lender or the state regulatory board. Although the appraisal primarily protects the lender, it can also benefit the buyer or home owner by:

  • providing assurances that the home is not over-valued
  • justifying the amount of the loan
  • qualifying you for certain terms
  • evaluating equity to remove Private Mortgage Insurance (PMI)
  • protecting against negative home equity
  • aiding tax and estate planning
  • helping determine insurance valuations
  • Determining the feasibility of home improvements, refinancing or additional financing
Chris Pedison

Contact Chris Pedison


Senior Loan Originator

Mobile (903) 215-3226
Toll Free 1-888-434-4349

NMLS #272747

PRE-QUALIFY NOW

CLICK HERE from your phone
to download my app!
MAM

Connect with Me

Get A Rate Quote!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

  • What’s Ahead For Mortgage Rates This Week – December 9th, 2019
  • 5 Essential Tips For Painting A House
  • Should You Get A Second Mortgage To Pay For College?
  • Case Shiller, FHFA Report Uptick In Home Price Growth In September
Equal Housing
Licensed by the N.J. Department of Banking and Insurance
AZ BK#0918586

Our Location


Mid America Mortgage, Inc.
14900 Landmark Blvd
Suite 600
Dallas, TX 75254

Copyright © 2019 · Powered by MySMARTblog