buying your home
The Property Appraisal
Before you're approved for a mortgage, your lender will require an appraisal to make sure it isn't lending more than the property is worth. An appraisal is simply an inspection in which a professional appraiser estimates the value of the home based on its size, condition, quality, and function. Who usually pays for the appraisal?
The buyer
The seller
Your real estate agent
The correct answer is "A". Appraisals generally run $300-500 each. If the appraisal is lower than the amount the lender will finance, then your loan won't proceed unless the seller lowers the price or you increase your down payment.