Hi Caroline, I can't speak for Wells Fargo, but I've never had a client denied based on an appraisal that came in at or above the purchase price on the contract. The rules on appraisal values for purchases are straightforward: the property must appraise at or above the purchase price (including the sellers concession, if any) in order for the lender to have sufficient collateral for the proposed mortgage.
In fact, the appraisal is not "short" or "low" unless it comes in below the contract price.. And then I normally say " congratulations" to my client because most contracts allows the buyer to go back to the seller and ask them to reduce the purchase price to reflect the actual appraised value. Of course, the seller can say " no." in which case the buyer can opt to make up the difference or walk away from the deal and get their deposit refunded.
You are entitled to receive a copy of your appraisal irrespective of the value along with a Declination Letter stating the exact reason for your denial. Where's your banker and attorney in all this? Are they MIA. There should be no reason for you to seek answers from the Trulia community on this issue when those two professionals are supposed to guide you through the mortgage process from preapproval to closing. Hold them accountable!
Should you require a second opinion on your purchase, please feel free to contact me directly at 917.699.0183 or via email at firstname.lastname@example.org.
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Senior Mortgage Loan Originator
NMLS License #24076