What happens if the appraisal comes in below the purchase price of the home you want to buy?
Though it might be an unexpected scenario, it can happen, and it’s best to be prepared.
You have to qualify and the home has to qualified. And one of the main things that the home has to qualify for, is the price to the value.
No matter what you the buyer or the seller agreed on the price-wise. The lender is not going to give the buyer who’s looking for a home, a dollar over the amount that the appraiser said that home is valued at.
How Appraised Value Affects A Mortgage Loan
An appraisal directly affects the amount of mortgage loan you can get because your lender gives you a home loan based on the appraisal’s estimate of the fair market value of the home. It keeps the lender from lending you too much money and keeps you from borrowing more than you need for a particular home.