An informed estimate of the value of a property. When made in connection with an application for a loan secured by a home, a professional appraiser usually performs the appraisal. A home loan appraisal is an unbiased estimate of your property’s fair market value by a licensed professional. It’s something that is typically required by all lenders during the mortgage process to ensure that the loan amount does not exceed the value of the home. A property’s appraisal is based on a number of factors—including location, condition, and sales of similar homes in the area. You will need an appraisal for most home loans including: FHA, Conventional, USDA, VA, and portfolio loans as well.