How do property appraisals impact the mortgage process in Oregon?

@berta 

Property appraisals play a crucial role in the mortgage process in Oregon. Lenders require an appraisal to determine the fair market value of the property that will serve as collateral for the loan. The appraisal helps protect the lender by ensuring that the property is worth the amount of money being borrowed.

If the appraisal comes in lower than the agreed-upon purchase price or loan amount, it can cause issues in the mortgage process. The lender may require the borrower to come up with a larger down payment to cover the difference or renegotiate the purchase price with the seller.

On the other hand, if the property appraises for higher than the purchase price, it can benefit the borrower by increasing their equity in the property and potentially lowering their monthly mortgage payments.

Ultimately, property appraisals are a crucial step in the mortgage process in Oregon, as they help ensure that the lender is making a sound investment and that the borrower is not overpaying for the property.