What is an Appraisal?
An appraisal is an opinion of the market value of the property
made by a qualified person on a specific date. To most people it's the
answer to the question "How much is the property worth?" for
lenders and mortgage professionals it's primary purpose is to form the basis of the
Loan-to-Value ratio (LTV) a key factor in determining if a loan is
even possible for the property and, if so, what the terms of the loan
might be.
In California, an appraisal may cost you
around $200-$400 for a single family home and often the lender may
require that you use an appraiser whom they trust.
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