Frequently Asked Questions

A home appraisal provides an independent opinion of a property’s market value for the mortgage transaction.

The lender uses that valuation to help determine whether the property provides acceptable collateral for the loan.

For a purchase, the appraisal may help confirm whether the property’s value supports the proposed financing. For a refinance, it may affect the loan-to-value ratio and the amount you can borrow.

An appraisal is only one part of the mortgage review. Your income, credit, debts, assets, and other qualification requirements still matter.

We’ll help you understand whether an appraisal is required and what the results may mean for your financing.

When the selected lender requires an appraisal, we generally encourage addressing it early enough to avoid unnecessary delays later in the transaction.

Appraisals can involve several steps, including ordering the report, scheduling a property visit when necessary, completing the valuation, and reviewing the results.

The process may take longer if the property is unusual, access is limited, or the lender requests additional information.

We’ll help coordinate the appraisal requirements with the lender and keep you updated on relevant developments.

Ordering early doesn’t guarantee the appraisal will be completed by a particular date, but it can provide more time to address unexpected issues.

Possibly. Certain loans may qualify for an appraisal waiver or another permitted property-valuation method.

Whether this is available depends on factors such as the loan program, property information, loan-to-value ratio, automated underwriting results, and lender requirements.

For example, some eligible conventional transactions may receive an automated appraisal-waiver option.

However, not every borrower or property qualifies, and an initial waiver may change if important loan details are updated.

We’ll explain the valuation requirements that apply to your specific mortgage.

A lower appraisal can affect the amount the lender is willing to finance because the property’s appraised value may be used to calculate the loan-to-value ratio.

Depending on the transaction, potential options may include:

• Renegotiating the purchase price: Your real estate agent may discuss this with the seller.
• Adjusting the financing: A different down payment or loan structure may be considered.
• Providing additional funds: You may be able to cover part of the difference if financially appropriate.
• Requesting a review: If there are legitimate concerns about the appraisal, the applicable lender process may allow a reconsideration of value.

Not every option is available in every transaction.

We’ll explain how the valuation affects your mortgage, while your real estate agent can help you understand the purchase-contract considerations.

A home inspection and appraisal serve different purposes.

A home inspection is generally arranged for the buyer to evaluate the property’s condition and identify potential maintenance or repair concerns.

An appraisal primarily evaluates the property’s market value for lending purposes.

Although an appraiser may identify certain property-condition issues relevant to the loan program, an appraisal isn’t a substitute for a detailed home inspection.

When you’re buying a home, both may provide useful information for different decisions.

Your real estate agent can help with inspection-related questions, while we’ll explain the property’s valuation requirements for your mortgage.

For most residential mortgage transactions, the lender requires acceptable homeowners insurance before the loan can close.

The policy helps protect the property serving as collateral for the mortgage.

Depending on the property’s location and characteristics, additional coverage such as flood insurance may also be required.

The lender may have specific requirements regarding the coverage amount, deductible, effective date, and mortgagee information.

We’ll explain which insurance details are needed for your loan and help coordinate them with the lender and closing professionals.

We recommend beginning your insurance search after you’re under contract rather than waiting until the final days before closing.

Starting early gives you time to compare coverage and premiums, confirm that the home can be insured on acceptable terms, and provide the required policy information to the lender.

Insurance costs can also affect your total monthly housing payment.

For example, if the actual annual premium differs significantly from the amount originally estimated, we may need to update your payment figures.

We’ll tell you when the lender needs the policy information and help you understand the requirements.

Yes. You’re welcome to shop for homeowners insurance through your preferred agent or insurance company.

If you don’t already have an insurance professional, we can connect you with agents we’ve worked with so you can explore available coverage options.

You’re not required to use someone we introduce.

When choosing a policy, consider the coverage, deductible, premium, exclusions, and whether it meets your mortgage lender’s requirements.

We’ll help coordinate the required insurance information once you’ve selected a policy.

Flood insurance may be required when the property is located in an area subject to mandatory flood-insurance requirements or when another applicable lender or program rule requires coverage.

The lender typically reviews a flood-zone determination as part of the property evaluation.

If flood insurance is required, you’ll need to arrange acceptable coverage before closing.

An insurance professional can explain available policies, coverage limits, and premiums.

We’ll help you understand the lender’s requirements and how any required premium may affect your estimated housing expenses.