Please note that just because the appraisal came in low, it does not mean you cannot close what you already locked. You could bring extra funds to make up the difference, you could have your agent re-negotiate the contract price, or you could close at the higher rate. There is always risk in starting over so you will need to weight the pros and cons.
Your choice is either to come up with the difference or see what your agent can arrange with the seller. If your purchase was contingent on appraised value you should be able to receive your earnest money deposit back.
Happy funding, Rudi
The bigger problem you are facing is a purchase price that doesn't match up with the appraised value. This means you will have to come in with more cash to close as the lender will only lend against the appraised value. If you are still within your contingencies, you may want to re-evaluate whether you want to move forward with this transaction or not.
If you have any further questions, please feel free to contact me. Good luck.
"i had a rate locked in with my investment bank, we going to close next week and he tells me the rate has changed from 3.75 to 4.125, i told he we have signed pns that states my rate. he told me the bank they use never recieved his rate lock and they would not alow us that rate. what can i do?"
You will need to look at your GFE to see what it says. What dates does it show on page 1 pertaining to the rate and fees? It should list a "good through" date for each and depending on what it says, you may have a valid complaint.
DAVID COOPER. Foreclosure and Bank Owned REO Buyer's Agent at Vertical Realty-Las Vegas. For your freee list Call +1-7024997037 or check website
I would love to discuss this more in detail with you and the opportunity to earn your business.
Realtor, DRE# 01891274
Century 21 All Moves
FREE Monthly Newsletter: http://newsletter.davidnewhome.com
David Cooper. Las Vegas Investor in Bank Owned REOs at 20% off. Freee list
email: email@example.com Call _1-7024997037
The main objective here is the property value, or the rate. my question is what has more weight in your perspective, the rate or the or the price?, if you are going to make 10 to 15 % on the price what is the difference to pay up 1 to 2 % higher in the rate.
mu suggestion for you is, do the numbers and see where is the most advantage for you.
Good luck and Happy funding.
Angel J. Hernandez
Prudential California realty
Best of luck!
Close it and get ready for decorating :-)
By the way, lenders order their appraisals through their pool of appraisers who are independent from lender's control; they don't know who is going to do it.