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The Reverse Mortgage Loan Process: Appraisal

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TERMINOLOGY

The process of getting a reverse mortgage loan involves several important steps. One of the most important parts of the process is the appraisal. Here are the basics of the appraisal during the reverse mortgage loan process.

Determining Value

An appraisal is used during the reverse mortgage process in order to determine the value of the property. This is a very critical part of the process because it helps the lender determine how much money they can loan you. You are only going to be able to borrow up to a certain percentage of the equity in your home. Therefore, in order to come up with an exact dollar amount, they have to conduct an appraisal to see what the property is worth in today's market.

Appraisal

To conduct the appraisal, they are going to hire a certified real estate appraiser. The appraiser is going to visit the property and take note of everything about it. They will look at all of the individual features of the house and evaluate the condition of the house. They will then compare your home to other comparable properties that have sold recently. In this manner, they will be able to determine what your house is worth if it was to sell today