If you originally was prequalified for a loan of 85000. Made an offer on a house for that amount. Can the Loan be denied if the appraisal for that property comes back at less then the original amount offered?
2007-06-11 12:33:33 · 3 answers · asked by HappySC 1 in Business & Finance ➔ Renting & Real Estate
Most assuredly. Not only that, but you are still bound by your offer to purchase, unless the real estate agent wrote in a contingency covering your backside in such a scenario. If you put up earnest money and cannot consummate the deal because the lender won't write the loan, expect your earnest money to vanish as well.
For well over a decade now, I (a real estate broker) always include the proviso that the 'offer is contingent upon a successful appraisal, for purposes of obtaining financing, at a value equal to or greater than the amount of the offer to purchase.'
A lender, even though YOU are approved/qualified for $85,000, cannot be expected to give you in a mortgage more than the appraised market value of the property.
2007-06-11 12:52:35 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Yes. If the house appraises for less than the asking price, the bank won't approve it. Commonly, the seller will reduce the asking price to avoid losing the sale.
2007-06-11 19:38:55 · answer #2 · answered by ♥Ashley K. 5 · 0⤊ 0⤋
well refinances are all based on equity in the house if you dont have the equity you dont get the loan
2007-06-11 19:39:21 · answer #3 · answered by cojik999 2 · 0⤊ 0⤋