Purchase and Refinance Home Loans Appraisals
Most lenders require an appraisal before granting a purchase or refinance mortgage loan. When you apply for a loan the mortgage company will order an appraisal to verify the value of the collateral they will be lending on. The cost of the appraisal is considered part of closing costs. Lenders can require a variety of different forms or schedules in the appraisal depending on the type of loan.
Appraisals for Home Equity Loans
A home equity loan (HELOC) is often a secondary lien on a property but can at times be in first position. A property valuation or appraisal is often required by the lender granting the loan.
Appraisals for PMI Removal
Private mortgage insurance is required by lenders at a certain loan to value ratio on both purchase and refinance loans (usually loan to values about 80%). Some lenders require you to pay down your loan amount to remove PMI but other lenders will allow you to remove the extra mortgage insurance with an increase in value verified by an appraisal report. Work with your loan servicer to determine if they will accept an appraisal to remove your primary mortgage insurance.
