What is a lender inspection?

A lender inspection, also known as a property appraisal or inspection, is a process where a professional evaluates the condition and value of a property that is being financed by a lender. The lender inspection is typically conducted by a licensed appraiser who assesses various factors, such as the property's location, size, condition, and comparable sales in the area.

The purpose of a lender inspection is to ensure that the property meets the lender's requirements and that the value of the property is sufficient to cover the amount of the loan. The appraisal helps the lender determine the amount of money they are willing to lend for the purchase or refinancing of the property.

The lender inspection is a critical step in the mortgage process, as it provides important information for both the lender and the borrower. If the appraisal comes in lower than the purchase price, it can potentially impact the borrower's ability to secure financing for the property.

Overall, a lender inspection is a key component of the mortgage process that helps protect both the lender and the borrower by ensuring that the property being financed is a sound investment.