Kep

Really need some advice...first time home buyer.

House list price: $214,990
Offered: $213,600 and seller pays closing costs which was accepted.
Appraisal came in at: $205,000 so the lender is concerned.

1) I am frustrated our real estate agent didn't know that our offer was higher than what it was likely going to be appraised at.

2) Why would the lender be concerned? Offer Price - Down Payment = Amount You Need the Appraisal To Be

Our down payment brings the loan amount to less than $205k so why would they not allow the mortgage?

Any info would be appreciated.

Thx

Reggie

First - agents don't know what appraisal will come in at - especially in this market.

Second - if you finance this house then the formula is appraisal price - down payment(10% or 20%)= amount you need to finance

That is why the mortgage company would be worried.

Email me if you need more details

de (-eeez_nutz)

"our" down payment? Did you get hitched or something?

03Indigo

In this market, you should not pay above appraisal. But that is just my opinion. Make them sweat it out.

Herr Schröder

Re-offer 85-90% of the appraised value; if they baulk, walk (unless you really, really, really, want this house). Sellers won't be in the drivers seat for a LONG time to come (unfortunatelty)..

Good luck man!!

Kep

Thanks fellas!

Kep

Haha maybe soon ; - )

Kep

Thanks Reggie!

de (-eeez_nutz)

Congraqts/I'm Sorry.... <---- pick which one suits you

Reggie

Like others said you should be able to get the sellers to come down in price. If you are planning to be in the house over six years and really like the house - overpaying for the house will probably not be a big issue and having the house of your dreams is more important.

I've seen lots of down turns in the CA market. I also saw lots of upturns too. Some can take six or more years to happen.