Home Buying in 30305>Question Details

scottonriver, Home Buyer in Atlanta, GA

If my offer on a Home Path property ends up being slightly higher than the appraisal (and assuming my offer is accepted)

Asked by scottonriver, Atlanta, GA Thu Aug 1, 2013

will the contract price default to the appraisal price?

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Answers

9
Typically, Home Path won't back down off of the price. For one the homes Do Not Require an appraisal if you go with Home Path Financing (beneficial in 2 ways over some other loans 1. low 3% down payment, and 2. No PMI). As this is a Special home with Special financing available it would normally be expected(unless your agent placed a Clause in your contract otherwise) that you pay the difference. If you should get your appraisal back and it is short on the value you have 3 choices.
1. Continue with what ever financing(my guess is you are trying for an FHA loan) and pay the additional difference.
2. Contact a lender who can do Home Path financing(We do)and we can ignore the appraisal (if you wish to) as it is not required to do an appraisal on a Home Path home if you use Home Path Loans.
3. If the difference is too great you may just consider walking away from a overpriced home.

I hope this answers your questions, if you need further assistance please feel free to call.

Best Wishes,

Robert Robbins
Senior Mortgage Specialist
Cornerstone Mortgage Group, LLC.
6151 Powers Ferry Rd., Ste 610
Atlanta, GA 30339
office 678-578-7613
Cell 404-932-5353
Fax 678-388-1336
rrobbins@cmghl.com
1 vote Thank Flag Link Thu Aug 1, 2013
If that were the case; Buyers would just OFFER $100,000 more than LISTING PRICE!
Wouldn't they?
1 vote Thank Flag Link Thu Aug 1, 2013
If you are using HomePath financing, then an appraisal is NOT required. For all other financing types, including HomePath Renovation, an appraisal will be required.

The maximum Loan to Value will always be based on the lesser of the Sales Price or the Appraised Value. If you overbid on the property and are obtaining an appraisal, then be prepared to have to bring that difference to closing. This is great reason on why to utilize the HomePath loan.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Fri Aug 2, 2013
It's best to see what your contract says about the contract price versus the appraised price. With many Homepath homes you may have to sign stating that you will pay the difference it property doesn't appraise. Be sure to discuss this with your agent and carefully review your contract.

Ava Anderson
Solid Source Realty Inc
770 369-5121
0 votes Thank Flag Link Thu Aug 1, 2013
Many people have been bidding above list in order to win the bid, then depending on appraisals to keep them from paying above market value. Be careful in doing so as there are many sellers (including HUD and Fannie Mae/HomePath and some homeowners) that will require that the buyer pay any difference out of pocket at closing; on top of down payment and closing costs. Banks will not lend higher than the appraised value. If you are sure you want to buy a HomePath property (so appraisal is not required) I recommend going with a HomePath Mortgage initially. Once the appraisal has been completed with your lender (with a conventional or FHA loan) there's no going back if the home doesn't appraise. You won't be able to finance the difference, and it will most likely be too late to start all over with a new lender.

Make sure you really want the home bad enough to pay above market value!

Please don't hesitate to contact me with any questions. 404-538-5396

Michelle Milller
REALTOR ®
RE/MAX Town & Country

http://www.bestgahomesforsale.com
0 votes Thank Flag Link Thu Aug 1, 2013
Your lender will only lend you up to 96.5% on the appraised value so you will have to come out of pocket for the difference. If you did Homepath financning instead of FHA, you would not need to pay for an appraisal and would save about $450 dollars as Fannie already has done one and will use it. If you had to do a "Highest & Best" "Multiple Offer Situation" and bid above the list, you may have to chance going FHA and pay the extra for the appraisal in the hopes that it appraises for more than what your accepted amount is. I will be glad to answer any and all questions you may have. Please call me on my cell.

Gene Caifano
Real Estate Consultant
REO & Short Sale Specialist
Chapman Hall Realty
6100 Lake Forest Drive, Suite 120
ATLANTA, GEORGIA 30328
678-362-7458 Cell
404-252-4512 Office
678-399-6469 Fax
genesellsfast@gmail.com
http://www.atlantaareaforeclosures.com
http://www.chapmanhallrealty.biz

"Referrals are the greatest compliment I can receive as a real estate agent."
0 votes Thank Flag Link Thu Aug 1, 2013
FNMA appraisals run higher that market...get your own appraiser to give you an opinion. Be careful with these homes......
Web Reference: http://www.hmtatlanta.com
0 votes Thank Flag Link Thu Aug 1, 2013
Aren't Home Path homes already appraised?
What does your contract say about meeting appraisal price?
0 votes Thank Flag Link Thu Aug 1, 2013
I have helped many people like yourself be sure to get the property they are looking at. Give me a call and lets talk about it.
Mark Crouch 678 847-3654
0 votes Thank Flag Link Thu Aug 1, 2013
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