No, it doesn't. The guidelines say that you have to take the lower of the 2... which ever is lowest... the appraisal or the agreement of sale. And the appraisal being good for 6 months for the most part, depending on the mortgage program, has been reduced to 4 months.
I hope this helps some. If you are currently working with a lender and they didn't or couldn't answer this question for you, please give me a call. Even if you have other questions, I would be glad to answer them for you.
Lastly, if this was the case, as per your question, you have to pay the difference in cash.
Jeffrey J. Belonger
Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619
e-mail : email@example.com