Eand appraisal report is usually necessary to secure a mortgage. Based on the appraised value of the property, the bank determines the risk factor for the mortgage requested. In many cases, having an appraisal report drawn up is mandatory. This applies to a normal sale, but also to a foreclosure sale.
An appraisal report is usually necessary to secure a mortgage. Based on the appraised value of the property, the bank determines the risk factor for the mortgage requested. In many cases, having an appraisal report drawn up is mandatory. This applies to a normal sale, but also to a foreclosure sale.
This fly does not apply when you buy a new-build home immediately after completion. If you wait longer, say a year, it is to be expected that the value of the newly built house will change. In that case, you will still be asked for a valuation report.
It is important that the purchase price matches the appraiser's valuation. This is because when granting the loan, the bank not only looks at your income but also at the value of the property you are going to buy. They will not let you borrow more than necessary, sticking to the established value of the property. So this depends on the purchase price or the appraisal value.