Appraisal
Quick Summary
A professional estimate of a property's market value.
ELI5 Explanation
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It is a report that tells the lender what your home is worth today.
Detailed Explanation
Private lenders rely on appraisals to set lending limits and fees. Rapid market shifts can change lender appetite even with similar appraised values.
Example
If a home appraises at $1,000,000 and max LTV is 75%, loan size may cap near $750,000 before fees.
Why It Matters
It directly affects loan amount and pricing.