Fortunately, not all mortgages require them. The appraisal exemption shortens the valuation process because buyers who qualify for an exemption may skip the in-person visit of an authorized appraiser. Instead, the lender will use the data provided by an automated insurance system to determine the value of the home being sold. This information will include recent sales prices for a nearby home and any previous sales data for the home the buyer is buying.
Home appraisals are generally required when taking out a mortgage, either to buy or refinance a home. An appraisal can reassure you and your lender that the price you agreed to pay for a home is fair. Appraisals are almost always required if you use a mortgage to buy a home. They are usually also required to refinance, although there are some situations where you might not need them (for example, if you're refinancing a government-backed mortgage in a simplified way)).
When you apply for a mortgage to buy a home, your mortgage lender will require that the home undergo an appraisal. Lower LTVs allow you to have lower interest rates, and so achieving a higher home valuation can save you money on your mortgage.
