FAQ

Appraisals

10 questions

What is an appraisal?

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An appraisal is a licensed appraiser’s opinion of a home’s market value based on comparable recent sales of homes in the neighborhood.

Why do I need an appraisal?

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Mortgage lenders always require a home appraisal before they will issue a mortgage because we want to protect our investment. For example : If the actual market value of a property is lower than the sales price and if the buyer defaults on the mortgage, the lender will not be able to sell the property for enough money to cover the loan.

Can I use or transfer a recent appraisal?

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Unfortunately, no. Loan Cabin prefers to be compliant and use our preferred appraisal management company to ensure the appraisal was done properly and compliantly.

I know an appraiser. Can he or she complete my appraisal report?

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Unfortunately, no. We the lender must choose the appraiser using our chosen appraisal management company.  An appraisal management company is an independent real estate appraisal company hired by lenders to perform valuations on potentially mortgaged properties.

How long does an appraisal inspection take?

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The appraisal inspection itself can take anywhere from 20 minutes to a couple hours depending on the size and details of the property. Here the appraiser will evaluate if your property is in good, fair, poor, or average condition.

What is the difference between a home inspection and an appraisal?

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home inspection only examines the condition of the home when making the assessment. A home appraisal considers the condition of the home, comparable home prices, lot size, home features, area crime rates and school zones.