Mortgage Qualification Problems Low Appraisals

Mortgage Qualification Problems Low Appraisals



Mortgage Qualification Problems - Low Appraisals
The real estate market in​ the​ United States is​ undeniably hot,​ hot,​ hot .​
This toward pace has resulted in​ an​ odd mortgage qualification problem - low appraisals .​
Here are your options if​ you​ get a​ low appraisal amount .​
Appraisals
An appraisal is​ simply an​ effort by a​ qualified person to​ put a​ value on​ a​ property .​
The process involves a​ review of​ the​ property,​ other properties in​ the​ area and so on​ .​
Mortgage lenders always require appraisals,​ so you​ have to​ deal with appraisal problems if​ you​ are going to​ get the​ home .​
Let's assume you​ have perfect credit,​ make a​ ton of​ money and ready to​ put down a​ solid down payment .​
You are happy,​ the​ lender is​ happy and the​ only thing left to​ do is​ get the​ appraisal .​
Unfortunately,​ the​ appraisal comes in​ well below the​ price you​ have agreed to​ pay for the​ home .​
Now what?
First,​ you​ need to​ take a​ deep breath .​
Buying a​ home is​ an​ emotional process .​
Try to​ step back from the​ process and objectively analyze whether you​ are paying too much for the​ property .​
If you​ still want to​ proceed,​ take the​ appraisal to​ the​ seller and see if​ you​ can get the​ price lowered .​
a​ solution should be possible,​ but be prepared to​ walk away if​ it​ isn't.
Second,​ perhaps the​ fair market values of​ properties in​ the​ neighborhood are dropping .​
We are beginning to​ see the​ market cool off,​ perhaps more so in​ your particular neighborhood .​
If this is​ the​ case,​ kiss the​ appraiser in​ thanks for keeping you​ out of​ a​ bad deal .​
Finally,​ the​ appraiser may simply be wrong .​
Appraisers are human and make mistakes .​
They may not know the​ neighborhood well .​
There are a​ variety of​ reasons you​ can get an​ appraisal that is​ off .​
If you​ suspect this is​ the​ case,​ check to​ make sure the​ appraiser is​ comparing the​ property to​ comparable homes in​ the​ neighborhood .​
If all else fails,​ have your own appraisal done for comparison purposes .​
Ultimately,​ a​ low appraisal should be viewed as​ a​ potential red flag .​
If nothing else,​ you​ should take a​ closer look to​ make sure you​ aren't getting a​ bad deal.




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