Do I Need An Appraisal?
In most cases, before approving a mortgage, the lender will want to know the market value of the home. The market value is determined by an appraisal completed by a licensed Appraiser.
Appraisals are required for purchases, refinancing, accessing equity or applying for a home equity line of credit. (HELOC). In cases where the loan-to-value (LTV) is very low, the appraisal might be waived by the lender.
For example, if your home has been assessed at $1,000,000 and you want to access $100,000, your LTV is only 10%. In this instance, a lender may waive the appraisal requirement.
The appraisal cost is always paid by the borrower and can cost between $250 – $500 depending on the property.