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Old 02-11-2010, 01:32 PM
 
Location: Rock Hill, SC
30 posts, read 178,277 times
Reputation: 29

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We got approved with our credit by the underwriter. Now we are sitting on pins and needles waiting on the appraisal. As long as it meets our loan amount are we good? We are willing to put up money as a down payment if it comes under. Is this allowed?
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Old 02-11-2010, 02:07 PM
 
Location: Plano, Texas
1,675 posts, read 6,806,677 times
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Yes. If the value is less than purchase price you will have to pay the difference including the down payment.
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Old 02-11-2010, 04:12 PM
 
381 posts, read 1,315,085 times
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Quote:
Originally Posted by VictorBurek View Post
Yes. If the value is less than purchase price you will have to pay the difference including the down payment.
Yes. This just happened to us. The bank was only able to lend us 80% of the appraised rate (because we were doing a 20% down conventional loan) so we had to pay every penny down on the amount over the appraisal in addition to the down payment.
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Old 02-11-2010, 07:10 PM
 
Location: Rock Hill, SC
30 posts, read 178,277 times
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We are doing a USDA 100% loan, and we are not putting anything down unless we have to.
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Old 02-15-2010, 01:47 PM
 
Location: NC
128 posts, read 481,713 times
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Just curious but why in the world would you pay more than what the property is worth? If your purchase price exceeds the appraised value of the property, that is one HUGE red flag.
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Old 02-15-2010, 02:25 PM
 
Location: Rock Hill, SC
30 posts, read 178,277 times
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Quote:
Originally Posted by CarolinaAppraiser View Post
Just curious but why in the world would you pay more than what the property is worth? If your purchase price exceeds the appraised value of the property, that is one HUGE red flag.
Because this home is perfect for us, and we plan on staying there for the rest of our lives.
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Old 02-15-2010, 04:54 PM
 
Location: Plano, Texas
1,675 posts, read 6,806,677 times
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Quote:
Originally Posted by scmommyof3kids View Post
Because this home is perfect for us, and we plan on staying there for the rest of our lives.

An appraisal is just someone's opinion of value. The true value of anything is what someone else is willing to pay for it; however, i would suggest you use the lower appraised value to negotiate a better deal. Not saying not to buy, but why not present to the seller the appraisal saying the comps in the area only support this value so i need you to reduce the price. Worst thing the seller could say is no and you could still buy the home.
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Old 02-15-2010, 05:42 PM
 
Location: Jacksonville, FL (Mandarin)
2,538 posts, read 6,068,348 times
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Yeah, if you get a low appraisal, use that figure to negotiate a better deal for yourself. You essentially have the upper hand, in that you know the seller wants to sell the house. They may even need to sell it. And, hopefully, they don't know you're willing to pay more for the house than the appraised amount.

About that loan type: what does USDA have to say about LTV, if it's greater than 100%? Do they still approve the financing?
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Old 02-16-2010, 04:16 AM
 
Location: Rock Hill, SC
30 posts, read 178,277 times
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Quote:
Originally Posted by VictorBurek View Post
An appraisal is just someone's opinion of value. The true value of anything is what someone else is willing to pay for it; however, i would suggest you use the lower appraised value to negotiate a better deal. Not saying not to buy, but why not present to the seller the appraisal saying the comps in the area only support this value so i need you to reduce the price. Worst thing the seller could say is no and you could still buy the home.
The appraisal hasn't come back yet. After doing my own research of that area I don't think there will be any issue. If the appraisal comes backs under we plan to negotiate the price.
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Old 02-16-2010, 03:34 PM
 
Location: Rock Hill, SC
30 posts, read 178,277 times
Reputation: 29
Appraisal came back today and it was over what we are asking for. We should be good right?
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