A home appraisal is a crucial step in the mortgage process at Contoso, providing an objective assessment of a property's market value. This evaluation is typically conducted by a licensed appraiser hired by the bank. The appraiser will inspect the home, considering various factors such as its size, condition, location, and recent sales of comparable properties in the area. Expect the appraisal to take around one to two hours, during which the appraiser may take photographs, measure the property, and note any features or deficiencies. After completing the assessment, the appraiser will generate a report detailing their findings and an estimated value of the property. This report is sent to Contoso for review, as the loan amount will be based on this appraisal value. If the appraisal comes in lower than the purchase price, it could affect your loan approval and require renegotiation of the purchase agreement. Therefore, it's essential to be prepared for this possibility. Ultimately, the appraisal helps protect both the lender and the borrower, ensuring that the loan amount aligns with the property's true market value.