As a homebuyer or home seller, it’s essential to be knowledgeable of the appraisal processes, as it’s one of the final steps during the closing of a home. By understanding the factors affecting how long an appraisal may take, proactive steps can be taken to make sure this process goes according to plan.
Home appraisals are done by lenders to see if your home is worth the loan amount you’re requesting to complete the homebuying process. Typically, the appraisal process can take around 1 to 2 weeks but when the market is busy, an appraisal can take upwards of about a month.
When a home doesn’t meet certain standards, and the appraised value comes in lower than the asking price, issues can arise. When this happens, a lender may require repairs to be made on the property and then for an additional appraisal report to be submitted.
In addition, if the market in the area you wish to purchase a property in is busy, the home appraisal process may take longer if there is a lack of appraisers available.
If the appraised value comes in lower than the asking price, either the difference needs to be met, or an additional appraisal needs to be done for the mortgage loan to be approved.
However, once the appraisal is approved, the mortgage lender then starts the underwriting process, in which a mortgage underwriter ensures needed documents and conditions are placed before issuing the loan.
During this process, they examine the borrower's credit, debt-to-loan ratio and other relevant factors to make sure the borrower is fit for a mortgage loan.
A home appraisal is a vital step of the home buying journey, so it pays off to work closely with a lender to explore your options to solidify a smooth appraisal process.
Sergio Evora is a Broker Associate at BrokerNation Real Estate and has been acknowledged as the #1#1 Top Producer for his Company. Sergio was recognized # 1 Real Estate Agent for Total Sales Volume and Total Closed Transactions for 2020, 2021 and just recently in 2022.
With over 28 years of Residential Real Estate experience, Sergio has built a reputation for achieving superior results for his clients. He assists buyers & sellers by utilizing his extensive knowledge of Miami’s investment opportunities, market knowledge, digital advertising, marketing expertise, keen negotiating skills and wide-ranging connections. Sergio’s extraordinary principles and ability to generate successful transactions is leading his clientele to consistently look to him for high-quality service. He is a Member of The Institute for Luxury Home Marketing with access to an extensive referral network.
Sergio’s passion is his family, volunteering, travel and his business.
