What do first-time homebuyers need to know about home appraisals?

You’re getting ready for your home closing and everything looks good-to-go. What could go wrong?

One of the most common hiccups in the process is a bad home appraisal. By bad, we are talking about an appraisal that says your dream home is not worth the money that you agreed to pay for it. Why is that a problem? Well, your lender won’t lend you more money than the home is worth because they are using the home as collateral and want to know that, in the event that you default on the loan, they can sell the home and get their money back.

We created the following infographic to give you the basic information that you should understand about home appraisals. That’s because, we want you to be an informed and confident homebuyer. Here at the HomeOwnership Center, we want you to succeed.