What Is a Home Appraisal and Why Do I Need One

By /

What Is a Home Appraisal and Why Do I Need One

First-Time Buyer Guide: How Appraisals Protect You (and Your Lender)

💡 Before you close on a home, your lender wants to know: is this place really worth the price?
That’s where the appraisal comes in. It’s not just a box to check—it’s a critical step that protects your investment and helps ensure you’re making a smart financial move.

1. A Licensed Appraiser Evaluates the Home’s Value

An appraisal is a professional, third-party assessment of a home’s market value, done by a licensed appraiser. They’ll compare the property to similar recently sold homes nearby, consider upgrades or issues, and determine what the home is truly worth in today’s market. This keeps things fair, honest, and unbiased.

2. Your Lender Requires It to Approve the Loan

Your mortgage lender doesn’t just hand out money—they need to be sure the home is worth the amount you’re borrowing. If you’re buying a home for $350,000, but it only appraises for $330,000, the lender won’t finance the full price. The appraisal protects the lender—and you—from overpaying.

3. A Low Appraisal Means You May Need to Renegotiate

If the appraisal comes in lower than your offer, you have a few options:

  • Renegotiate the price with the seller
  • Cover the difference with cash

Walk away if your offer included an appraisal contingency
That’s why it’s so important to structure your offer with smart protections—and to work with a lender and agent who have your back.

Want Help Navigating Your Home Appraisal Like a Pro?

📘 Download our free “First-Time Buyer Game Plan” eBook — includes appraisal tips and a glossary of terms
💬 Chat live with our team now to get clear on what to expect in your appraisal
📞 Or schedule a quick call to ask questions about your offer, contingencies, and next steps

At Stairway Mortgage, we make sure you don’t just buy a home—you buy it at the right value.
Smart leverage starts here

Ready to Take Your First Step?

Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.

  • Takes just 5 minutes
  • Tailored results based on your answers
  • No credit check required
Take the Discovery Quiz

Need a Pre-Approval Letter—Fast?

Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.

  • Only 2 minutes to complete
  • Quick turnaround on pre-approval
  • No credit score impact
Get Pre-Approved Now

Got a Few Questions First?

Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.

Schedule a Call

Related Posts

Scroll to Top