What you should know.
An Appraiser is an impartial 3rd party who provides an evaluation of the home. There are real estate Appraisers for non lender purposes and then there are mandatory bank Appraisers used by lenders. Lenders rely on appraisers to determine whether the home is equal to the value of the agreed upon price or to determine the relationship between the fair market value and the amount of loan you might be approved for. In addition, the lender uses the appraisal to determine interest rates and down payment. The appraisal can also provide information about market trends and comparable sales.
Once completed the lender must provide you a copy as soon as possible. You should review the appraisal report very carefully. If you believe the appraisal is not accurate, suspect possible discrimination, or have a specific appraisal complaint, ask the lender to request a reconsideration of value. If you believe the lender has not addressed your concerns you can contact the bank federal regulator or the consumer finance.
If you are a first time home buyer a Real Estate Agent can assist in preparing you for this process. It is best to prepare for the appraisal early in the loan process. Ask the lender about their secondary review process in advance of the appraisal. Always know what to expect. Check out these resources for more information.
FDIC.gov
Consumerfinance.gov
Appraiserblog.com