What Is a Home Appraisal?
The home buying process can certainly be a long and involved journey. There are many moving parts and boxes to check. In a sense, it’s almost like buying a car. There is shopping around to do, loan rates to secure, and value to assess.
If you’re in the market to buy or refinance a home, you’re probably aware that some form of inspection will need to take place to determine your home’s value. This is known as a home appraisal, and it’s a very important step in the overall home purchasing process. Therefore, it’s important for you to understand just what a home appraisal is, and how it plays into your home buying/refinancing journey.
Defining a Home Appraisal
To put it simply, a home appraisal is the estimated value of a home typically determined by two factors:
- A complete inspection of the property
- Comparison to recently sold homes in the area
It’s also important to distinguish between a home appraisal and a general inspection. Both occur before a home purchase, but only a home appraisal is required while an inspection is just highly recommended. Furthermore, an appraisal assesses a home’s value while an inspection verifies its condition.
How Long is a Home Appraisal Valid?
Typically, a home appraisal’s results are valid for about 4 months. Market conditions change often, so an appraisal’s lifetime is generally short. If you do not close on your home within that window of time, you will be required to order another appraisal.
After your home is appraised, the appraising party will assign a value to the property and send their assessment to the mortgage lender. If the home is appraised at or above your asking price, you can begin the process of closing on your home once your loan is finalized.
Get Desirable Home Mortgage Rates at Butler Mortgage
To get the best mortgage rates to fit your budgetary needs, contact the professionals at Butler Mortgage. For over 25 years, the team at Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in Central Florida. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.