Finance
A lender requires a home appraisal primarily to:
ADetermine the amount of the buyer's down payment
BConfirm that the property's market value supports the loan amount✓ Correct
CVerify the property boundaries
DEstimate property taxes
Explanation
Lenders require appraisals to protect their collateral — they will not lend more than the property is worth. The appraisal confirms that the property value supports the requested loan amount.
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