What is the primary function of an appraiser during a mortgage transaction?

The primary function of an appraiser during a mortgage transaction is to assess property value for loan support. This process involves determining the fair market value of the property based on various factors such as location, condition, comparable sales, and current market trends.

In mortgage transactions, lenders use the appraised value to ensure that the amount they are willing to lend aligns with the actual value of the property being financed. This is crucial because the property serves as collateral for the loan. If a borrower defaults, the lender needs to know that the property can be sold for enough to recover the loan amount.

This role is distinct from other responsibilities that may involve the buyer or the lender. Unlike negotiating loan terms or reviewing the borrower's financial history, the appraiser’s sole focus is on providing an objective and unbiased assessment of property value. While property inspections for structural issues are important for assessing overall condition, they are not the appraiser's primary function during a mortgage transaction; rather, they may fall under the purview of a home inspector. Thus, the role of assessing property value is central to the appraiser’s responsibility in the context of securing a mortgage.