Appraisal
An independent assessment of a property’s market value performed by a licensed appraiser hired by the lender. The lender bases the loan amount on the lower of the purchase price or appraised value. A low appraisal can require a larger down payment, a price renegotiation, or a second appraisal.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Escrow — An account managed by your loan servicer that collects a portion of your monthly payment to cover property tax…
- Title insurance — Insurance protecting the lender (and optionally the buyer) against claims against the property’s ownership his…
- Earnest money — A good-faith deposit made when your offer is accepted, demonstrating serious purchase intent. Typically 1–3% o…
- Closing disclosure (CD) — The final itemized disclosure of your loan terms, rate, monthly payment, and all closing costs. Federal law re…
- HOA (Homeowners Association) — Monthly fees for shared-property communities (condos, townhomes, planned developments) covering common area ma…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.