Easy Financial Calculators » Mortgage Terms » Appraisal

Appraisal

An appraisal is the process of determining an opinion of value of a property in question. Mortgage lenders typically require an appraisal be performed to determine a property’s fair market value. The appraisal ensures that the lender is not loaning more than a property is worth. In addition, some real estate offers include a contingency for appraising at or above the offer price.

An appraisal is completed by an independent third party. During the appraisal, a variety of factors are taken into account including, but not limited to:

• Age of the home
• Size of the home, including square footage, lot size, the number of bathrooms and bedrooms, and other key factors
• A comparison of similar homes in the neighborhood and their recent selling price

Learn more helpful Mortgage Terms to assist your home buying process.