Appraisals of real estate for use as a mortgage guarantee

This is when an item of real estate is appraised so that it can be used as a guarantee for a mortgage loan. As a result of this process, the lender (usually a financial institution) will know the value of the object being used as a guarantee for the loan and what risks are involved in the mortgage transaction. The sole purpose of a mortgage valuation is to serve as a guarantee for the mortgage loan and it is completely independent from the amount of the financial mortgage transaction or the taxable event associated with this.