As a buyer, the appraisal is essential to whether or not you’ll be approved for the mortgage amount you’ve requested. The home that you purchase provides the collateral needed to borrow the money. If the home isn’t valued at the same amount or higher than what you intend to borrow, you could run into problems receiving approval.

What can you do if you believe a home appraisal is inaccurate? The first step is to speak to your real estate agent about any concerns you may have. They will evaluate the appraisal and look into recent sales of similar homes. If they believe your apprehension is justified, they can speak to the lender about filing a dispute with the appraisal office.

If you are having difficulty getting a mortgage for the amount you want due to the appraisal, you can make a larger down payment to reduce the overall loan value. Alternatively, you can take out private mortgage insurance (PMI) on your lender’s behalf. PMI is designed to protect the creditor loaning you the money should you default on the mortgage.

 

Before your mortgage application is fully approved, an appraisal of the home must take place. This process determines the estimated value of the house. If the valuation falls below the asking price, it could pose difficulties for the seller or [prospective buyer. If you believe that an error has been made during the appraisal process, speak to your real estate agent about your options for dealing with it.