Shri Krishna Financial

 Mortgage loan approval involves a thorough assessment of various factors, and property appraisal is a critical component of this process. Here's how appraisals can impact mortgage loan approval: 1.        Determining Property Value : The primary purpose of a property appraisal is to determine its fair market value. Lenders want to ensure that the property's value is sufficient to cover the loan amount in case of default. If the appraised value is lower than expected, it can affect the loan-to-value (LTV) ratio, potentially leading to a higher down payment requirement or even loan denial. 2.        Risk Assessment : Lenders use property appraisals to assess the risk associated with the loan. If the appraisal indicates that the property is overvalued or has significant defects, the lender may consider it a higher-risk investment. This could result in stricter loan terms, higher interest rates, or rejection of the loan a...