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If the appraised value is higher than the sales price, there is no impact to you.
When the property appraises for a lower value than the sales price, the lower appraised value is used to determine your loan amount. To complete the sale, you may have to increase the down payment to make up the difference between the appraised value and the purchase price.
An appraisal is a written estimate of a property’s market value completed by an appraiser. The value is based upon a market analysis of the prices of recent sales of similar properties in the area and the property’s physical condition. Usually, this requires an interior and exterior property inspection.
Why is an Appraisal Necessary?
Lenders use your appraisal to determine your loan amount. Your appraisal will be completed shortly after you request your mortgage.
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Orange County
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