Do Appraisers Know The Loan Amount?

In most cases, appraisers do not know the loan amount when conducting a home appraisal.

The loan amount is different from the agreed upon sales price. Appraisers most likely know the sales price because the standard appraisal forms require the appraiser to enter that information.

Appraisers are typically hired by lenders or appraisal management companies to provide an unbiased and independent assessment of a property's value. The appraiser's primary role is to determine the fair market value of the property based on objective factors such as its condition, location, comparable sales, and market trends.

The loan amount is a separate consideration that is determined by the lender based on factors such as the borrower's qualifications, down payment, and loan program. The lender uses the appraiser's valuation as one of the inputs in determining the loan amount. However, it is important to note that the appraiser's role is not to appraise the property to match a specific loan amount but rather to provide an accurate valuation based on market conditions.

Maintaining independence and objectivity is crucial for appraisers to ensure the integrity of the appraisal process.

 

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