What exactly does a mortgage appraisal check?

Question

The appraisal from my bank from which I am getting a mortgage told me the appraisal came in at the purchase price. It seems weird that the appraisal would be exactly the purchase price. Can someone please explain?

Answer 1

the appraiser seldom goes over the purchase price and I have no answer as to why except he or she gets a copy of the purchase sales agreement with the order.

Answer 2

The appraiser would have gathered three comparable properties that have recently sold and reconciled a value based on these comparables.  It sounds as if you purchased your home at market value.  In other words, you didn't pay too much and you didn't pay too little.  You paid what any prudent purchaser would have paid for your property.  Also, if you purchased in a new subdivision, this process would have been easy as pie for the appraiser as many homes similar to yours would be available for comparison.

Answer 3

All that really means is that the bank's appraiser agrees that the property is worth at least what you are paying for it.  They just want to make sure that they are not loaning you more money than the house is worth.

I would not worry too much about it.

Congratulations on the home!!!

PS.  IF you feel the home is worth more, you may want to have your own appraisal done.  Just a thought.