The appraisal represents the final step before the loan goes into underwriting. The purpose of the appraisal is to determine the value is there in the home. Additionally, the appraisal may determine whether there is any repairs that need to be made to the property.
As a buyer you need to be aware that there have been circumstances where the property doesnít appraise. In this case the seller has a couple of options:
1) Reduce the purchase price to the appraised amount
2) Refuse to sell.
As a buyer you will not be allowed to purchase a home that does not appraise.
For the purpose of this chapter, letís assume that the home appraises. The loan would then go into final underwriting and a loan commitment will be issued.