Mortgage 101 - Appraisal

mortgage process



Houston Capital utilizes a panel of local real estate appraisal firms to perform our appraisals. Our firm does not permit the use of appraisal management companies (AMC's). AMC's have been the source of great media attention & underwriting difficulty since 2008. AMC's provide low quality work, performed by less experienced appraisers, unfamiliar with market areas often resulting in low valuations. Houston Capital's panel members assure our clients a high quality, fair and reasonable appraisal is performed on their property. This equips your mortgage loan for smooth sailing in the important process of underwriting and is one of many lending advantages in dealing with Houston Capital Mortgage.  

An appraisal of the property is required for the mortgage process. The appraiser interprets market data to arrive at a value estimate. Consideration is given to the site, amenities, property type, and condition of the property. Considerable research and data collection must be completed prior to the appraiser arriving at a final opinion of value. The method commonly used is known as the COMPARISON APPROACH, which uses other "bench mark" properties (comps) of similar size, quality and location that have sold in the last 12 months to determine your value. The availability of recent comps in last 6 months is integral to obtaining an appraisal that is suitable for mortgage purposes. 


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