A home appraisal is a review that gives the current value of the property you want to buy. You must get an appraisal before you buy a home with a mortgage loan. Buyers with large down payments greater then 20% may not be required to have the house appraised.

Lenders require appraisals because they can’t lend out more money than a home is worth. If the appraised value comes back lower than your offer, you have the option to “bridge the gap” of the difference with cash, have your agent renegotiate the purchase price or walk away and keep your earnest money.

FHA and VA appraisals also include safety guidelines, the home must be in good condition with no safety violations. If the appraiser “flags” any repairs these repairs must be completed and the appraiser may have to come back out to verify repairs have been completed. This repairs should be made buy the seller, its not recommended a buyer makes repairs on a home they currently do not own. Keep in mind some sellers can choose not to accept an offer from a FHA or VA buyer because of these stipulations.

Appraisals delays can also cause delays in closing dates.