Before a lender issues a mortgage loan, they will likely request an appraisal of the property. A home appraisal is a process that delivers an estimate of the fair market value of the property at that moment in time. The lender typically requires this appraisal before loan approval to ensure that the loan amount is not more than the value of the property. The appraisal companies Canadalend uses are hired by lenders looking to ensure the feasibility of their loan.
Who performs the property appraisal?
The property appraisal is typically performed by a licensed individual who is trained to asses property values. The buyer does not get to choose the appraisal companies Canadalend uses, because the lender wants an objective evaluation of the property. That being said, the lender cannot push the appraiser to deliver a property value the lender might prefer. Although the appraisal companies Canadalend uses primarily protect the interest of the lender, the appraisal also protects the interests of the borrower.
How does a home appraisal benefit the home buyer?
Although mortgage lenders require a property appraisal to ensure that they are not lending too much money for the property, getting the home appraisal can benefit the buyer in many ways:
- An accurate appraisal performed by the appraisal companies Canadalend uses will provide assurance to the buyer that they are getting the best deal on the property they are purchasing
- An accurate appraisal will also allow the buyer to sell the home in the future for its full value, ensuring that the buyer can get the full value out of the home down the road
- Buyers will find that they are unable to get financial assistance without an appraisal; All mortgage lenders require an appraisal to ensure that they are not lending too much money against the property
- Most insurance companies will not provide you with insurance on your home just because you say that your property is worth a certain amount. An appraisal can be of great value to a buyer because they may not have access to insurance coverage without an accurate appraisal
Although the appraisal companies Canadalend uses are hired by the lenders and protect the interests of the lender, the appraisal also protects the interests of the buyer. The lender does not want to lend money on a poor investment, but the buyer does not want to purchase a poor investment. Canadalend ensures that clients are provided with all the information required to make optimal financial decisions. Find out today more about the appraisal companies Canadalend uses.