Finance
An Iowa lender conducts an appraisal as part of the mortgage approval process primarily to ensure:
AThe buyer is paying a fair price
BThe property value supports the loan amount✓ Correct
CThe property meets building code requirements
DThe neighborhood is acceptable to the lender
Explanation
Lenders require appraisals to confirm that the property's value adequately secures the loan. If the appraisal comes in below the purchase price, the lender will limit the loan to a percentage of the lower value.
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