You can appeal these items and ask for a reappraisal - though this means another appraisal fee with no guarantee the result will be any better. If the appraisal comes in substantially less than you expected, review the report for errors. When a low appraisal prevents you from getting a mortgage loan FHA loans can be particularly conservative when it comes to LTV. However, if the house is appraised for less than the purchase price, it means you would have to make a larger down payment to get the LTV down below 90 percent. The reason is that lenders base their risk underwriting on loan-to-value (LTV) ratio, which is the amount borrowed relative to the value of the property.įor example, if you are applying for a loan that requires an LTV of 90 percent or less, it means the remaining 10 percent of the purchase price must come from your down payment. How much does a house have to appraise for to get a mortgage?Įven when you are making a down payment it is best if the appraised value is at least as much as the total purchase price, and not just the amount of the mortgage. This way, if the appraisal comes up short, you are able to withdraw your offer without forfeiting that money. Therefore, your offer should state that it is contingent upon the appraisal meeting the sales price. When you put a purchase offer in on a house, you may have to put up good-faith money which could be forfeited if you withdraw the offer. Include an appraisal contingency in the offer.FHA mortgages are especially stringent when it comes to potential hazards such as lead paint, and even consider factors external to the property itself such as traffic volume and airport noise. While there are positives such as square footage and lot size that can add to a property's value, there are also potential negatives such as structural problems or health risks. Consider both the property's assets and its liabilities. How sound are the plumbing, climate control and electrical systems? Is there wear-and-tear or damage that will require repair? These conditions affect the appraisal, but they are also things you should be aware of before buying a house.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |