What is an Appraisal?

An Appraisal is an estimate of a property’s fair market value. It’s a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by a state licensed professional Appraiser who is trained to render expert opinions concerning a Bay Area property’s value, its location, amenities, and physical conditions.

Who owns the Appraisal?

The mortgage company owns the appraisal even though the borrower paid for it. This is because the mortgage company orders the appraisal on the borrower’s behalf, and the Appraiser lists that mortgage company on the report. The borrower does have the right to receive a copy; however it’s the mortgage company’s discretion to give the borrower the original appraisal report.

Can Another Mortgage Company be Used
After the Completed Appraisal?

Yes. In most cases you will not have to pay for another appraisal if you change your mortgage company, and depending on the loan program typed, the first lender can transfer it to the new lender. Some appraisal companies may charge a small fee because additional work is required to show the new mortgage company. The original mortgage company has the right to refuse to transfer the appraisal to another lender. In this case, a new appraisal is needed.