Home Buying in Greenwich>Question Details

sharmaakshit, Home Buyer in Greenwich, CT

Does Fairfield county bar association contract has any appraisal contingency ? Is it safe for a buyer to go without having one in contract? Thanks

Asked by sharmaakshit, Greenwich, CT Sun Aug 26, 2012

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3
Laura Feghali’s answer
Hello Sharmaakshit,
To answer your question to me....Yes, a mortgage contingency would include the lender's appraisal as it's part of the lending process for a loan approval. I write it in next to the mortgage contingency on contracts so that the seller is aware that this is part of the approval process so that there are no misunderstandings.

Best wishes!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Mon Aug 27, 2012
Hi Sharmaakshit,

Like Laura, I think the use of the appraisal contingency is a valuable tool. The days when the banks would lend any amount on virtually any property based on the buyer's credit and a rising market are long gone. A your offer to purchase should include all the terms and conditions that will allow you to proceed safely and prudently.

Jay Cooke
0 votes Thank Flag Link Mon Aug 27, 2012
hi Jay - Thanks for the response. But is mortgage contingency enough by itself? If the appraisal comes lower, won't my mortgage be simply rejected? Thanks.
Flag Mon Aug 27, 2012
Hello Sharmaakshit,
It is always wise if you will be financing your home purchase to have a mortgage approval contingency included to protect yourself. A lender will not approve a mortgage if the home does not appraise at or above the selling price. So yes, you should include an appraisal contingency in your offer. It can be written into the contract if it is not already included.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Sun Aug 26, 2012
Hi Laura -- Does that mean that since the contract already has a mortgage contingency, and the lender will not approve a loan if the appraisal comes lower, appraisal contingency is sort of redundant? Thanks
Flag Sun Aug 26, 2012
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