What is the primary function of an appraiser in the mortgage lending process?

The primary function of an appraiser in the mortgage lending process is to determine the value of a property for loan justification purposes. This valuation is critical because lenders need to ensure that the amount they are lending to a borrower is supported by the actual market value of the property being financed.

When an appraiser evaluates a property, they take into account various factors, including its location, condition, size, and comparable sales in the area. This objective assessment helps the lender make informed decisions regarding the approval of the loan, ensuring that the property serves as sufficient collateral for the mortgage. If the appraised value falls below the purchase price or the amount requested by the borrower, it may impact the loan terms or lead to a rejection of the application altogether.

In the context of the other choices, they do not align with the primary role of an appraiser. Collecting payments is a task associated with loan servicing, inspecting properties for insurance purposes relates to risk assessment from an insurer's perspective, and approving or rejecting loan applications falls under the jurisdiction of loan officers or underwriters, not appraisers.