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What Happens After an Appraisal? 

May 16, 2022

For most people throughout Illinois and Indiana, an appraisal is requested as part of a real estate transaction. Typically, the buyer will request an appraisal following the requirement from their lender—most lenders will not issue a mortgage loan without an official appraisal value first. At Allstate Appraisal, we offer residential and commercial real estate appraisals throughout Illinois and Indiana. If you have ordered an appraisal as part of a real estate transaction and are wondering what happens after the appraisal has been issued, here’s what you need to know—

Appraisal Is Reviewed By Mortgage Lender/Loan Underwriter

After the home appraisal has been issued by the appraisal company and provided to the bank, it will be reviewed by the mortgage company.  The mortgage company will be checking to see whether or not the home appraised for the offer amount listed in the purchase agreement between the buyer and the seller. Finding the home appraisal value keeps the lender from giving out more money than the home is worth, and also keeps the buyer from borrowing more money than they really need. Most of the time, lenders will only give out loans for the appraisal amount. For example,  if a home is appraised at $590,000 and you offer $600,000, you may be responsible for paying the $10,000 gap between the two values; your loan won’t cover this. This is called the appraisal gap.

Appraisal Is Disputed

In some rare cases, an appraisal may be disputed. If the home you’re buying (or selling) appraises for way more or less than the purchase agreement price, you could ask for a value appeal. This may involve bringing in another appraiser to conduct an appraisal. 

Loan Process Proceeds

If the appraisal value is close enough to the purchase agreement price that the loan underwriter decides to move forward with the loan, you’re all set! If your loan is approved, you’ll move forward in the process. However, how long it might take to close from the time your appraisal is received varies on a case-by-case basis, and it’s important to understand that the appraisal is not the only thing that the underwriter will be considering during the loan approval process. 

Call Allstate Appraisal Today

If you need a residential or a commercial real estate appraisal, reach out to our team directly. We have years of experience and have a thorough appraisal process in place. We also offer appraisal reviews. Connect with us today to learn more.


If you have a question or would like to place an order for an Appraisal or Review, please fill out the form below. Once you’ve submitted your order, someone from our office will contact you within 1 business day to confirm your order or answer any questions.

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