After your P&S is signed and your deposit has been received, the lender orders the appraisal. A licensed appraiser will conduct a review of the property to ensure both you and your lender of your new homes value.

The appraiser will note its style and overall condition, measure the square footage and confirm the number of rooms. While appraisers are not to be confused with home inspectors, they will look for any obvious defects or safety issues.  Appraisers also compare the property to its legally designated use. For example are there two units when there should only be one. Is it zoned properly, located in a flood zone, are there other external factors that could impact value or marketability, etc.  A list of comparable properties will be pulled to determine if your purchase price is right for the market. Comparable properties should be located in the same area and should be similar in size, style and function. For example, if your home is a Ranch with three bedrooms and two baths, the appraiser will base its value on nearby three bedroom ranches.

You will have an opportunity to see the appraisal report before the closing and will be mailed a copy of it. The appraiser submits a copy of the appraisal report to the lender in approximately 10 days. 

Your mortgage process now begins and takes about 30 days to complete.

Below is a sample of what the first page of an appraisal looks like. Usually the value is found on the second page.