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No, I really can't and that's my concern. I just decided that I'm NOT going to run around, like a chicken with my head cut off, trying find another lender/appraiser. I believe that while it is a nice place, it could indeed be worth $112K, especially in this market.
I trust the current appraisal amount. The seller is going to have to lower the price to $112K, or it's a done deal. I'm very upset, but everything happens for a reason; so maybe I'll just enjoy the extra money from my raise while looking for another place.
Thanks you all for the feedback!
The previous posts have given you good financial advice that I agree with.
I would add that reading "I'm very upset", and "I'm practically in tears right now at work", suggests that the purchase is not right for you emotionally. It's not just the process. Your credit scores and low capitalization suggest the stress may continue after the transaction. If you don't have any emergency cash reserves, trying to stretch yourself to the breaking point will make you worry about meeting the mortgage, taxes, insurance, and unknown extras.
Take a breather from this until you calm down. In the interim, the seller will either be lucky enough to sell it or will have to consider coming down. Remember, the seller is now under the psychological pressure that his property did not appraise well. Most appraisals are good for six months. Therefore, if the seller comes down to your price, ask the new mortgage company to use the current appraisal and waive any additional fee. Also, save as much as you can to increase either your down payment or cash reserves.
Finally, remember it is an old business adage that you can not negotiate well if you are emotionally involved. Start convincing yourself that you don't really need this place and you weaken the position of adversaries. If you can communicate that you don't really give a ****, they lose their ability to stress you out. There are plenty of opportunities out there. Be patient and one will come to you eventually and you will be in a better position to buy with confidence. Good luck.
My credit report was pulled, by my lender, in mid December. I close at the end of this month . My credit score from December was right AT the minimum qualified score for this loan package.
I pay for a service that sends me quarterly updates of my credit scores. Last night, I received the update and my scores dropped . I don't understand why! There's NO new collections or past due records and in fact, I paid off a bunch of collection accounts which were removed from my report. If anything, I expected my scores to be higher, not lower. So I'm very afraid that this will put me under the minimum qualification for this loan package now.
My question is: Is it likely that the lender will pull my updated credit report with the lower scores before I close, or will they just use the report/scores from December?
Would my lower scores make a difference even though there are NO new debts or collection items on my updated report??? I don't want to send red flags to the mortgage company by calling about this if I don't have to...but I also don't want to get any last minute surprises before or at closing.
Your score will change depending on what parameters are being looked at. While your score to you, may have dropped, its likely that to the bank they wont because they dont look at some things like medical bills etc.
In addition, when the bank pulled your score, it could have been the trigger to lower your score.
No, I really can't and that's my concern. I just decided that I'm NOT going to run around, like a chicken with my head cut off, trying find another lender/appraiser. I believe that while it is a nice place, it could indeed be worth $112K, especially in this market.
I trust the current appraisal amount. The seller is going to have to lower the price to $112K, or it's a done deal. I'm very upset, but everything happens for a reason; so maybe I'll just enjoy the extra money from my raise while looking for another place. Thanks you all for the feedback!
Wise choice. Think of it this way: you might actually find a better place at a better price at a better mortgage rate. A few years ago I put offers on a couple different properties that didn't work out. I'm happy now, because waiting put me in a much better situation. Maybe it's just your guardian angel looking out for you
After taking a breather, and getting a lot of advice, I'm kind of happy that this seems to not be working out. So how do I get out of this deal? I'm under contract, but at this point, I don't want the condo anymore. I could find a better place and mortgage in a few months or so.
I'm already out about $650 for the appraisal and inspection, but I also have $2K in Escrow. So if I back out of this, stating the low appraisal amount as the reason, the seller wouldn't get to keep my money would she??
After taking a breather, and getting a lot of advice, I'm kind of happy that this seems to not be working out. So how do I get out of this deal? I'm under contract, but at this point, I don't want the condo anymore. I could find a better place and mortgage in a few months or so.
I'm already out about $650 for the appraisal and inspection, but I also have $2K in Escrow. So if I back out of this, stating the low appraisal amount as the reason, the seller wouldn't get to keep my money would she??
Talk to your real estate agent, and at the very least, use the appraisal to help re-negotiate the purchase greement. Might need to convert this to a short sale purchase.
Most buyers add a clause, depending up financing, or appraisal. Either way you should be fine because its tough to get a loan for more then the appraised value. It does depend if this was added to the purchase agreement though.
The contract doesn't say anything about an appraisal. It just says that I'm held liable if I'm being uncooperative or negligent in obtaining a mortgage. I guess I'll just need to read it over again, but to my initial understanding of the contract, if I’m not able to get a mortgage (through no direct fault of my own) I’m entitled to get my Escrow money back.
I’m assuming that a low appraisal would be a cause for this. But by me telling my realtor that I don’t want to try another mortgage company and pay for another appraisal that may come back at the same amount, is that being “uncooperative”?
The contract doesn't say anything about an appraisal. It just says that I'm held liable if I'm being uncooperative or negligent in obtaining a mortgage. I guess I'll just need to read it over again, but to my initial understanding of the contract, if I’m not able to get a mortgage (through no direct fault of my own) I’m entitled to get my Escrow money back.
I’m assuming that a low appraisal would be a cause for this. But by me telling my realtor that I don’t want to try another mortgage company and pay for another appraisal that may come back at the same amount, is that being “uncooperative”?
P.S. What's a "Short Sale"?
You can tell your realtor that you are willing to try another mortgage company, but you can't afford to pay for another appraisal. That is not being "uncooperative". If the seller is smart he will pay for another appraisal, because BOTH your realtor and the seller know the house won't qualify you for a loan with a bad appraisal. Even if they do offer to pay for the appraisal, make sure you pick an appraiser you trust. You need to guard against them slipping in somebody they know will inflate the appraisal. Good luck. By the way, remind yourself AND the realtor that they are supposed to be representing YOU, not the seller.
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I'm very upset, but everything happens for a reason; so maybe I'll just enjoy the extra money from my raise while looking for another place.
. I don't understand why! There's NO new collections or past due records and in fact, I paid off a bunch of collection accounts which were removed from my report. If anything, I expected my scores to be higher, not lower. So I'm very afraid that this will put me under the minimum qualification for this loan package now.
Dont Freak
Update :)
