Mortgage Appraisal Review

The mortgage appraisal review report displays the estimated value of the property based on the market conditions. It supports the underwriters to calculate the correct value of the property and enables to decide whether the property carries sufficient value for the loan process. Based on this report the underwriters can advise the lenders or the lending institutions the best loan amount to be issued to a borrower.

If a borrower defaults in the repayment on a mortgage loan and can not keep the agreement words as per the mortgage note and deal signed by him, the lender or the investor who has the right to foreclose on the property and can sell it in the market and recover his investment. If the property value is not more than the mortgage loan amount, the lender or the investor will suffer a loss.


Now a days many of the states issue certifications to the qualified appraisers and they can only be the valid appraisers to appraise the property.

To know exactly the process of the appraisal and role and responsibilities of the appraiser, one should first understand the duties of an appraiser. The processor has to contact the appraiser to perform the appraisal. The appraiser must be able to provide complete legal structure, objectivities, geographical picture and the proper value of the property without any biasness. He must have a complete knowledge about the surrounding areas, survey of the area, building construction, flooding area, legal descriptions and marketing conditions.

There are certain more factors based on which an appraiser must prepare the report, the following are the factors:

• He should analyze the sales prices of neighborhoods
• He should examine the property interior and exterior conditions
• He should analyze the climatic conditions whether the property value will grow up or decline
• He should study the area whether the public amenities are available to the property
• He should examine the three comparable properties that have sold recently and are having similar type of resident with subject to size, location and similar features.
• He should also need to examine the incoming source in case of property uses for rental purpose

After taking all the above factors into consideration, the appraiser should make the appraisal report and hand over to the processor and the processor should hand over this report with all other verification reports to the underwriters.