How important is the property appraisal in order to get my loan approved?

The appraisal on a property can be very important in order to receive the final approval on a loan request.  The property appraisal serves two primary purposes.  The first purpose is the appraisal determines the value of the property.  Loan prequalifications and preapprovals are based on property value estimates; the appraisal established the actual value of the property in which to base the loan.  When using a mortgage qualification calculator, one of the considerations is the loan to value or the amount of the down payment for the loan.  The appraisal determines the value that is used for these calculations.  In addition, the property appraisal determines the condition of the property.  A poor property appraisal can affect the mortgage loan application if there are problems such as deferred maintenance or substandard housing.  It is a good decision to always obtain a copy of the property appraisal from the lender or mortgage broker in order to make sure that the information in the appraisal is accurate.

This entry was posted on Tuesday, December 9th, 2008 at 10:08 pm and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.