An appraisal will be required by the lender to confirm the value of your property.   An appraisal is a written estimate of a property’s market value completed by an appraiser. The value is based upon a market analysis of recent sales prices for similar properties in the area, and the property’s physical condition.  Because home values can vary considerably, even in the same neighborhood, it’s important for the lender to have an objective opinion of the value of a home before making a loan that will be secured by the property.
 
As the lender is approving the mortgage based on the purchase price they want to ensure that the market value, as determined by a qualified licensed real estate appraiser, is supported.
 
The appraiser will provide a detailed report for the lender typically using comparable properties sold within a certain time period to support the purchase price.