Appraisal Process for a Mortgage
An appraisal is a necessary part of the process of the mortgage. The borrower needs to pay for the mortgage upfront via credit card.
How to Deal With a Low Appraisal
In today world where everything is automated. Appraisal report to is a blend of human effort and automated system. Just the way we have credit reporting system for borrowers. Same way Appraisal companies have access to an automated system called MLS. Where most up to date prices of home are published and recorded.
An appraisal has a fair idea of what the value of the home should be based on prices in the neighbor hood. However a physical inspection is needed for him to ascertain any new development or how well kept the home is to assign a specific value.
Appraisal looks for similar homes called comparable in the neighborhood and he has to mention in his report how far and why did he choose that specific home as a comparable before assigning a value to the subject property of the borrower.
Sometimes the borrower has spent a lot or feels his home value is higher than others and yet he doesn't get the same value.
One has to understand that prices may vary from appraiser to appraiser but traditionally its more or less the same. Your best guide would be your Loan Officer to get a perspective on the matter.
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