When you buy a home for the first time, you're likely to run into a variety of terms that you've never heard before. Knowing what these terms are can help you throughout the home-buying process. This article will go over some of the most common and confusing terms that you'll see when buying a home.
Appraisal and Assessed Value
Appraisal and assessed value seem to refer to the same things, but in reality, they're very different. The appraisal happens during the escrow process. Before a bank will loan a home buyer money, they must first determine whether the house is worth the amount given in the purchase agreement.
The lender determines this by sending an appraiser to the house to conduct an appraisal. The appraisal is an assessment of the…