click at Dallas Appraisal Dist
Purpose of appraisal was to determine if lender could process an FHA loan
You determined market value when you made an arms length offer. Appraiser said OK
Of course not. The appraisal is for the bank only and serves absolutely no other purpose. Ignore what the appraisal says and just be glad it came in high enough so that you could qualify for the loan.
I've had instances where a bad appraisal caused the $750,000 home to be appraised for $600,000. While we objected to the appraisal price, there was nothing we could really do and the deal fell through. My buyers lost the home of their dreams.
Best of luck and while you may not be happy about it, congrats on the home appraising for the purchase amount.
You paid for the appraisal for the lender to be OK with what you are paying for the home in reality. The lender wants to know the price being paid for the property is fair and market value and the appraisal shows this.
Hope that makes sense.
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Keller Williams Realty | 360 Lending Group
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Each bank submits different criteria. Why?
Isn't an appraisal an appraisal?
A buyer or seller HAS the option of buying their own appriasal that is free of bank imposed criteria.
That is always an option and the appraiser would be no knowledge of the offered purchase price.
What, then would you do if that appraisal and your purchase offer matched?
Be aware, the real purpose of the bank appraisal is to assure the bank can reselll the mortgage. If the consumer wants to beleive it is related to 'value' well the bank is ok with that.
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Appraisal is a process that is required by lender that they send their selected appraiser out to make sure the property that they are giving a loan on is worth how much it is being purchased. And more importantly the appraiser will note any lender required repair to be done prior to closing.
This is more so of a process to protect lender's interest.
JP and Associate
Licensed Mortgage Loan Officer
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