Before ordering the appraisal, it is important to put an offer in the home. It is further signed in the form of a purchase agreement. After this, the process of an appraisal starts. Once the appraisal has been ordered, the appraisal shall come for the inspection of the home.
The inspection of certain parts of the home is done, depending upon the kind of loan you get. Such inspection is carried out to know more about the property, its features, and to make sure that the concerned property is in a good state and there are no issues in terms of safety and security. Once the inspection is completed, the appraiser then reviews the comps to come up with a fair market value of the property. For this purpose, a report is created by the appraiser that contains a detailed description and information of the property, its condition, basic features, unique features, and other important factors.
If the appraisal is made at or above the price of purchase of the home, the loan is processed as usual. If the price of the appraisal is lower than the agreed-upon purchase amount, more steps are required to be taken. This is because, in this situation, the lender cannot lend money more than the overall worth of the home.
Once the house appraisal Toronto is completed and the purchase price is set, the lender then finalizes the terms and conditions of your loan. You will get a closing disclosure containing all the details of your down payment, closing costs, etc. after which you will close on the loan.