Understanding Appraisals: What Homebuyers Need to Know
When you're buying a home, the appraisal is a critical step in the process. But what exactly is an appraisal, and why is it important?
What is an appraisal?
An appraisal is an unbiased evaluation of the home's market value conducted by a licensed professional. The appraisal helps lenders determine how much they're willing to lend for the property you're buying.
Why does it matter?
The appraisal protects both you and the lender by ensuring the home's price reflects its actual market value. If the appraisal comes back lower than your offer price, it could affect your financing.
What happens if the appraisal is low?
If the appraisal is lower than your purchase price, you have a few options:
Renegotiate the price with the seller
Make up the difference in cash
Cancel the contract if there's an appraisal contingency
At Cohen Mortgage, we guide you through every step, helping you understand your options clearly and confidently.
If you are ready to begin your custom-tailored financing discussion, please contact one of our loan officers today:
https://www.cohenmortgage.com/aboutus/meet-our-professionals