You’re buying a home. This is one of the most important decisions you’ll ever make in your life. What you don’t know yet, is how complex the home buying process is and how many components are included. Therefore, it is always a good idea to have a real estate attorney help you with your home purchase. There are parts of the purchase process that can be difficult for someone without the expertise or training to understand. One of those parts is the mortgage appraisal process, which is required if you are receiving a mortgage from a lender.
When you apply for a mortgage loan, there are a number of items you must satisfy before closing escrow. These are known as contingencies. One of those items the purchase of the home will be contingent on is a home appraisal. The lender will send out a home appraiser to come and look at the home, take pictures, and provide a report as to the condition and value of the home. Specifically, the lender is looking to ensure that the home is worth at least as much as the mortgage amount you are seeking. If the appraised value is equal to or greater than the contract price, that item should be satisfied per the lender’s requirements. Conversely, if a mortgage appraisal comes back and the value of the home is lower than the contract price, it may affect the mortgage approval. This could mean that a buyer must come up with extra cash, or the buyer and seller have to negotiate a lower selling price. If the parties do not come up with a solution to the price discrepancy, it may cause the entire deal to fall through.
An experienced real estate attorney can help you understand your home appraisal and what steps you should take if you have a problem with your home appraisal. If you are buying a home, you should consult with an experienced real estate attorney to help you through your home buying process.
The law firm of Mattleman, Weinroth & Miller, P.C., is composed of experienced attorneys throughout the states of New Jersey and Delaware. Please contact the office for a free initial consultation and get any questions answered regarding your specific case.