Appraisal Basics

An appraisal of the real estate is the valuation of defined ownership rights. Pertinent data for the site that must be considered is:

• The property's amenities

• The property's physical condition

• Comparable sales data

The appraiser does not create value, rather
interprets the market to arrive at an estimated value.

Considerable research and collection of comparable sales data is needed to arrive at a final opinion of value. When complete, the appraisal is added to the other documentation to complete the loan package.

Underwriting your loan. Once the processor has put together a complete package with all verifications and documentation, the file is sent to the lender. The underwriter is responsible for determining whether the package is deemed an acceptable loan. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more information and/or documentation. If the loan is acceptable, as submitted, the loan is put into an "approved" status.