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Old 07-24-2020, 08:41 PM
 
89 posts, read 151,408 times
Reputation: 67

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Hey guys,

I'm in the process of purchasing a new home. Closing is scheduled very soon. The appraisal report came back and the value of my home is $20,000 above the purchase price, not including my down payment. I feel like this is a good thing but I am a first time home buyer and I never been through this process before. The report also states that the market in my area is expected to rise which I will agree. My question is, what does this mean for me?
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Old 07-24-2020, 09:05 PM
 
Location: Florida
2,441 posts, read 2,522,842 times
Reputation: 1799
Quote:
Originally Posted by Melz222 View Post
Hey guys,

I'm in the process of purchasing a new home. Closing is scheduled very soon. The appraisal report came back and the value of my home is $20,000 above the purchase price, not including my down payment. I feel like this is a good thing but I am a first time home buyer and I never been through this process before. The report also states that the market in my area is expected to rise which I will agree. My question is, what does this mean for me?
Your real estate agent and mortgage officer are the best experts to comment on this.
First it means you are getting a good deal.
But the rest depends on your mortgage lender.
Why you are asking it here?
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Old 07-24-2020, 09:24 PM
 
89 posts, read 151,408 times
Reputation: 67
I'm asking it here for the same reason everyone else post questions on this forum. There are people on here that know this and understand this better than me and can give some insight. For what it's worth, the appraisal report was sent to me later on a Friday afternoon and I just read it. So yeah, I plan to ask my realtor and mortgage lender about it but I have to wait until Monday. In the meantime, maybe there are some 2 and 3 time home buyers that can share some knowledge on what this mean. Again, it's my first home so I don't fully understand appraisal vs purchase price, equity, market value, etc.
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Old 07-24-2020, 09:31 PM
 
Location: Florida
2,441 posts, read 2,522,842 times
Reputation: 1799
Quote:
Originally Posted by Melz222 View Post
I'm asking it here for the same reason everyone else post questions on this forum. There are people on here that know this and understand this better than me and can give some insight. For what it's worth, the appraisal report was sent to me later on a Friday afternoon and I just read it. So yeah, I plan to ask my realtor and mortgage lender about it but I have to wait until Monday. In the meantime, maybe there are some 2 and 3 time home buyers that can share some knowledge on what this mean. Again, it's my first home so I don't fully understand appraisal vs purchase price, equity, market value, etc.
My mortgage officer can be reached on Saturday.
My agent is normally available pretty much all the time and responds very fast.
I don't know about your agent though. But good agent responds normally 7 days a week, including evening time.
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Old 07-24-2020, 11:28 PM
 
15,418 posts, read 7,477,525 times
Reputation: 19357
Quote:
Originally Posted by Melz222 View Post
I'm asking it here for the same reason everyone else post questions on this forum. There are people on here that know this and understand this better than me and can give some insight. For what it's worth, the appraisal report was sent to me later on a Friday afternoon and I just read it. So yeah, I plan to ask my realtor and mortgage lender about it but I have to wait until Monday. In the meantime, maybe there are some 2 and 3 time home buyers that can share some knowledge on what this mean. Again, it's my first home so I don't fully understand appraisal vs purchase price, equity, market value, etc.
It's an estimate, and it came in above your purchase price, so the mortgage company will likely be happy that your loan to value ratio is better than expected. Otherwise, it has no bearing on your purchase. You won't pay more to the seller or anything like that.
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Old 07-25-2020, 06:42 AM
 
467 posts, read 778,335 times
Reputation: 376
That is a great thing to happen!

That means the value of your home is $20,000 more than you paid. Congratulations!
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Old 07-25-2020, 08:15 AM
 
Location: Fulshear, TX
305 posts, read 265,499 times
Reputation: 425
Just be glad it appraised at or above purchase price. I don't tend to think it means a whole lot as far as value is concerned, because I tend to think if a home was truly worth $20k more, most sellers would not accept the lower offer. It does not affect your down payment requirements or help (at this time) removing any sort of PMI, etc. Enjoy the new house and congrats!
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Old 07-25-2020, 08:31 AM
 
5,976 posts, read 15,267,441 times
Reputation: 6710
Default Good...

As others noted, it is a good thing as it is considered a 'professional' appraisal. 'Means you got a good deal and paid under what it should theoretically sell for and what banks take into consideration for the loan.
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Old 07-25-2020, 08:32 AM
fnh
 
2,888 posts, read 3,911,512 times
Reputation: 4220
Quote:
Originally Posted by WRM20 View Post
It's an estimate, and it came in above your purchase price, so the mortgage company will likely be happy that your loan to value ratio is better than expected. Otherwise, it has no bearing on your purchase. You won't pay more to the seller or anything like that.
This. The appraisal is requested by the mortgage lender to verify that the loan collateral - the home - is worth the money they're fronting you to buy it. The answer is yes and that's what matters. The appraisal is now just another pricey document you will file away after closing.

Congratulations!
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Old 07-25-2020, 01:11 PM
 
1,743 posts, read 3,820,070 times
Reputation: 2430
It means next to nothing.
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