An appraisal is a determination of the value of something, such as a house. A professional appraiser — a qualified, disinterested expert — makes an estimate by examining the property, and looking at the initial purchase price and comparing it with recent sales of similar property. Banks and real estate companies use appraisals to ascertain the worth of real estate for lending purposes.

With respect to the reverse mortgage process, an appraisal is done before closing to determine the value of the house and to ensure that it meets minimum standards of maintenance. In some cases, repairs may be required as a condition of the loan.

A Few More Related Articles of Interest:

The Pocket Idiot’s Guide to Reverse Mortgages

5. How much equity do I have and how much can I borrow?

Reverse Mortgage FAQ

Zillow.com Online Home Value Estimates - How Good?

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