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Mortgage Agent Licensing Practice Exam · Question

Which of the following scenarios would likely require an 'appraisal' of the property?

An appraisal is typically required when a property's value needs to be established for lending purposes, such as when purchasing a new home, refinancing to acce

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Question: Which of the following scenarios would likely require an 'appraisal' of the property?

Answer options:

  • A client is renewing their mortgage with the same lender with no changes.
  • A client is making an extra lump sum payment on their existing mortgage. ✅ A client is applying for a new mortgage to purchase a property or refinancing to pull out equity.
  • A client is seeking general financial advice unrelated to a mortgage.

Correct answer: A client is applying for a new mortgage to purchase a property or refinancing to pull out equity.

Explanation: An appraisal is typically required when a property's value needs to be established for lending purposes, such as when purchasing a new home, refinancing to access equity, or switching lenders. This assesses the collateral's worth.

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