A home appraisal is a key step in the home buying process. It helps confirm the home’s market value. It also helps the lender confirm that the loan amount fits the property value.
Sprint Funding focuses on clear guidance that fits your situation and your needs, so you can make a confident financing decision.
Book a free consultation online, or call 760-849-4475 to talk through your timeline, your offer price, and your appraisal questions.
Table of Contents
- Key Takeaways
- What a Home Appraisal Is (and What It Is Not)
- Why Appraisals Matter for Mortgage Approval
- Where the Appraisal Fits in Your Closing Timeline
- What Appraisers Evaluate
- What to Do If the Appraisal Comes in Low
- How Appraisals Can Differ by Loan Type
- How to Reduce Appraisal Surprises
- How Sprint Funding Can Help
- Home Appraisal FAQs
Key Takeaways
- An appraisal protects you from overpaying and protects the lender from over-lending.
- Appraisals affect approval, down payment needs, and closing timelines.
- A low appraisal does not always end the deal. You often have options.
What a Home Appraisal Is (and What It Is Not)
A home appraisal is a professional opinion of a home’s market value. A licensed appraiser creates it. The appraiser uses recent comparable sales and property details to estimate value.
What an appraisal is not
- It is not a home inspection. An inspection looks for defects and maintenance issues.
- It is not a tax assessment. A tax assessment supports property tax calculations.
Why Appraisals Matter for Mortgage Approval
Appraisals matter because lenders use them to manage risk. The lender needs a baseline value for the loan.
Appraisals protect buyers
A higher purchase price can feel normal in a fast market. An appraisal adds an independent value check. It helps you confirm that the price matches the market.
Appraisals protect lenders
A mortgage is tied to the home. The lender needs to confirm that the collateral supports the loan amount.
The appraisal affects the numbers your lender uses
Most lenders use the lower of:
- The purchase price, or
- The appraised value
That comparison can affect your loan-to-value (LTV). LTV is the loan amount compared to the home’s value. A lower value can change the loan structure.
Where the Appraisal Fits in Your Closing Timeline
The appraisal usually happens after the contract is signed and the loan process is underway.
A common sequence looks like this:
- You sign the purchase agreement.
- The lender orders the appraisal.
- The appraiser schedules a visit.
- The appraiser completes the report.
- The lender reviews the report during underwriting.
What can slow the appraisal down:
- The appraiser has limited access to the home.
- The home is unique and comps are limited.
- The market is changing fast and pricing is hard to bracket.
- The area has fewer recent sales.
If you face a tight deadline, timing matters even more. Some buyers use a bridge loan strategy when they need flexibility between selling and buying. Sprint Funding offers Bridge Loans in situations where speed and timing drive the decision.
What Appraisers Evaluate
Appraisers focus on features that influence what buyers pay in the current market.
Appraisers often review:
- Location and neighborhood trends
- Square footage and layout
- Bedroom and bathroom count
- Lot size and site features
- Condition and visible updates
- Comparable sales (“comps”) and adjustments
An appraisal is a valuation report. It is not a pass-or-fail grade. The stress usually comes from what the value means for the loan.
What to Do If the Appraisal Comes in Low
A low appraisal means the appraised value is below the contract price. The difference creates an appraisal gap.
Your most common options:
- Renegotiate the price. The seller may lower the price to match value.
- Bring additional funds. You may cover part of the gap with cash.
- Request a reconsideration of value. You can do this when you have strong support, like better comps or corrected facts.
- Change the deal plan. You may adjust financing terms or restructure the transaction.
- Use your contract protections. Many contracts allow a buyer to exit if the appraisal contingency applies.
How to approach a low appraisal in a practical way:
- Read the report for factual errors.
- Review whether comps match the home’s true peer group.
- Ask your agent for stronger comps, if they exist.
- Talk to your lender about realistic paths forward.
A calm plan helps you avoid rushed choices. It also helps you protect your budget.
How Appraisals Can Differ by Loan Type
Every mortgage uses an appraisal to confirm value. Some programs add extra guardrails.
Sprint Funding offers multiple loan programs, so you can match the program to your property type and goals.
Conventional Loans
Conventional loans are common for standard home purchases. The appraisal still matters for value and LTV. The process is often straightforward for typical properties.
FHA Loans
FHA loans can help buyers with limited savings or tighter credit. FHA appraisals can pay more attention to basic safety and habitability items, depending on the property.
VA Loans
VA loans support eligible service members and veterans. VA appraisals can include property standards tied to safe occupancy, along with value.
Construction Loans
Construction loans can involve value checks tied to build progress and completion. Appraisal planning matters because the home changes during the build.
DSCR Loans for Investors
DSCR loans focus on rental property performance. The appraisal still matters because the lender still needs a clear value foundation for the loan.
How to Reduce Appraisal Surprises
You cannot control the market, but you can reduce risk.
Use these steps:
- Review comps before you submit an offer.
- Avoid relying on the “best-case” price scenario.
- Keep your timeline realistic for underwriting and appraisal steps.
- Choose financing that matches the property type and your plan.
- Ask questions early, not after the report arrives.
How Sprint Funding Can Help
Appraisals connect to the loan strategy, the timeline, and the negotiation plan. A lender can help you plan for each step before it becomes a problem.
Sprint Funding emphasizes guidance that is specific to your situation and your needs. If you want help choosing a loan path that fits the property and your closing window, contact us today..
Home Appraisal FAQs
Who pays for the appraisal?
In many transactions, the buyer pays the appraisal fee as part of the loan process. The exact timing depends on the lender.
Can an appraisal be waived?
Some loans may qualify for appraisal waivers through automated underwriting. Many loans and properties still require a full appraisal.
How long does a home appraisal take?
Timing varies by location, property type, and appraiser availability. The process includes scheduling, the visit, and report delivery.
Can a buyer dispute a low appraisal?
A buyer can request a reconsideration of value when strong support exists. A request works best when it corrects facts or provides better comps.
