Getting approved for jumbo mortgages can have many obstacles that need to be addressed, but seldom do borrowers think about the property value. Finding the desired home becomes the main concern without ever thinking of the importance of the price vs. value for the approval of a jumbo mortgage.

An appraisal, which is performed by an independent professional appraiser, is necessary in order to determine the market value of the property that is be purchased and mortgaged. This is done for the protection of both the buyer and the lender. Although the appraiser inspects the property, he is not an inspector and does not perform a property inspection. The appraisal is a normal and mandatory procedure in the mortgage process. Problems often arise, especially with higher priced properties, since the appraisal must compare the property with other similar properties in the area and the average sales price for a certain time period. The purchase price must be close to the average sales price in order to be accepted for the jumbo mortgage.

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