After a house appraisal, the borrower should first verify the appraised value aligns with the loan amount requested. If the property’s value is lower than the loan amount, the borrower may need to reduce the offer price, secure additional funds, or negotiate with the seller. Once the loan amount is confirmed, the lender will proceed with underwriting, which involves reviewing the borrower’s credit history, income documentation, and asset verification. If underwriting is approved, the loan agreement is finalized, and the closing process begins. If underwriting is denied, the borrower can request a reconsideration or explore alternative loan options.

The post-appraisal steps ensure alignment between the property’s value and the loan terms, minimizing financial risk for both the borrower and lender. According to the Federal Housing Finance Agency (FHFA), approximately 15% of mortgage applications are denied due to discrepancies between the appraised value and the loan amount, underscoring the importance of this stage. Additionally, a 2022 report by the Urban Institute found that accurate appraisals reduce loan default rates by 20%, as they prevent overleveraging. Underwriting, in turn, assesses the borrower’s repayment capacity, with data from the Consumer Financial Protection Bureau (CFPB) showing that 30% of loan defaults stem from insufficient income documentation. Combining these steps mitigates risks and ensures sustainable homeownership.