- This topic has 7 replies, 5 voices, and was last updated 9 years, 11 months ago by Anonymous.
- May 5, 2011 at 9:01 am #203861AnonymousInactive
appraised value? The house is worth at least $275,000, but I can buy for $171,000. Is that an easier loan approval process than if I was purchasing at appraised value?
- May 9, 2011 at 11:04 pm #269532AnonymousInactive
Appraised by who? The tax assessment is irrelevant in a falling market.
What matters is what the bank’s assessors appraise it at. If you’re under that, it means you’ll be borrowing a smaller portion of the value, which is always a good thing.
- May 11, 2011 at 2:27 am #271930AnonymousInactive
It depends. If you’ve been pre-qualified for a loan of $275,000, but you’re only going to need $171,000, then yes, it should be much easier for you. However if you haven’t had your credit checked or seen a mortgage broker yet, and you think that the value of the house has any say in you getting approved for a loan, I’m sorry, but that just isn’t the case. the value of the home and the asking price has nothing to do with the loan getting approved.
- May 12, 2011 at 6:41 am #273983AnonymousInactive
Unfortunately, it’s no easier. The bank still wants to know YOUR ability to pay them back, not how great a deal you’re getting.
Now, you’ll likely not have to pay PMI which will be a huge savings, and after you’re in you can probably get a HELOC with little difficulty.
- May 18, 2011 at 12:44 am #429055AnonymousInactive
T he general rule on all mortgages goes this way. The loan will be based on the price agreed upon in the purchase agreement or the appraisal value “WHICH EVER IS LESS”. In a way the difference does go to the buyer in terms of equity.
The best example that I can give is: Lets say you put in an offer to purchase a property at $ 100,000 and this offer is accepted. Then the appraiser values the property at $ 120,000. Your loan amount will still be based on the agreed purchase price of $ 100,000. Now, in a way the extra money does come to you in the terms of equity, because if you wanted to go and get a home equity line of credit you could. So in closing, the money doesn’t come to you in the form of a check. But you made a great buy and are walking into a home with equity.
- May 18, 2011 at 1:34 am #429056AnonymousInactive
“The appraisal was 25% over asking” – This is awesome for you. It means that you INSTANTLY make an extra 25% equity, since you still only pay for the agreed price.
The USDA would only have an issue with a LOW appraisal.
- May 18, 2011 at 1:56 am #429057AnonymousInactive
The only possible problem is the underwriter could carefully review the appraisers work and see if they made some mistakes. This should not be a problem for you. I would not get real excited. You probably did make a good purchase, but the appraiser may have also made a few mistakes and the “real” value may be more similar to what you paid.
I see no way this is a problem for you.
The bank will not make you a higher loan based on the appraisal.
- June 11, 2011 at 8:10 pm #288138AnonymousInactive
When getting a home loan your credit is the main thing that the lender will look at. However if you have a home that might have a lot of equity it will strenghten your file. Home owner in the area will not be happy because you could be lower the vaule of their property! Good luck
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