Mortgage

A mortgage is a loan used to buy or refinance a property, with the property itself pledged as security. If the borrower stops paying, the lender can foreclose and take the property.

Before a lender approves a mortgage, it usually orders an appraisal to confirm that the home is worth enough to back the loan. The appraisal reports the home's gross living area along with its value.

Lender rules are why ANSI Z765 is so widely used. Fannie Mae has required the standard on most single-unit appraisals for loan applications dated April 1, 2022 or later. FHA, VA, and USDA loans do not require it.