How does a home appraisal for a mortgage work?

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The appraisal is an important part of being able to take out a mortgage , it is a requirement of the bank to know what financing you could obtain and it allows you to know the real value of your home. In today's article we will see how home appraisal for a mortgage works and how the maximum value is achieved.


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How does a home appraisal for a mortgage work?
The housing appraisal is used to know the real value of a property, it is carried out through an official appraiser. It is essential that it be an agency or appraiser approved by the Bank of Spain , otherwise it will not be valid to apply for the mortgage. The banking entity needs this procedure to:

Know the real value of the property , and know what type of financing they can grant you.
Value higher or lower than the price of the property. Depending on the result of the appraisal, the entity will be able to assess the risk it is assuming for the loan. The higher the appraisal, the more risk the bank will be assuming.
When the bank requests the appraisal, you should know that you have the right to Chinese Overseas America Number Data choose the appraiser you want to work with, as long as it is approved by the Bank of Spain. In addition, the appraisal is valid for 6 months , if after this time you need to carry out a procedure with the bank, you will have to do it again, this is due to fluctuations in the market and the value of the property.

home appraisal for mortgage

What does the result of the appraisal mean for the client?
The result of the appraisal is essential when granting a mortgage and can greatly change the loan that is going to be granted. If the appraisal is low, the bank will lend you less capital for the mortgage. Let's look at it with an example so that you can see it clearly:

Let's say you want to buy a property for a value of €150,000 and the appraisal results in €100,000. In that situation, the bank would finance the value of the home appraisal , if it was 80%, you would have to put the remainder up to the sale price of your savings. This means that many people lose their apartment due to lack of savings and the money from the deposit contract, which they had already signed.



How can you achieve maximum value?
This will depend on the appraisal, you cannot influence the result, but you can be informed of the key points to carry out the appraisal:

Location of the property.
Typology.
Distribution and lighting.
Building characteristics.
Housing type regime (VPO, charges, etc.)
Age and state of conservation.
Construction materials.