Appraisal
A licensed appraiser’s independent opinion of a property’s market value, ordered by the lender.
The lender needs to know the collateral supports the loan, so it orders an appraisal based on recent comparable sales. The resulting value caps how much the lender will lend, regardless of what you agreed to pay.
An appraisal is not a home inspection. It estimates value; it does not tell you whether the furnace is near the end of its life.
Related terms
- Appraisal gapThe shortfall when a property appraises below the contract price, which the buyer generally must cover in cash.
- Home inspectionA buyer-ordered evaluation of a property’s condition and systems, used to decide whether and how to proceed.
- LTV (Loan-to-Value Ratio)The loan amount as a percentage of the property’s value, the main measure of how much equity cushions the loan.
- ContingencyA condition in the purchase contract that must be satisfied, or the buyer can withdraw without losing earnest money.
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Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures