When a lender's value differs from the price
THE HOME GUIDE · 37
When a lender's value differs from the price
A sale price and a lender's value are used for different purposes.
ABOUT 3 MINUTES TO READ
A QUICK LOOK · THREE THINGS TO KNOW
01 / START HERE
The bank makes its own check
A buyer and seller may agree on a home price.
02 / START HERE
A lower value can change the loan
If the bank's value is lower, the buyer may need more cash or a new loan plan.
03 / START HERE
Ask early to avoid a rush
Get lender papers ready and ask what will happen if the appraised value is lower.
A buyer and seller can agree on a price. A lender can still value the home differently. That gap may change how much money the buyer needs to bring to closing.
PART 01
The bank makes its own check
A buyer and seller may agree on a home price. A lender may use an appraisal to decide what the home is worth for its loan.
PART 02
A lower value can change the loan
If the bank's value is lower, the buyer may need more cash or a new loan plan. The effect depends on the lender and deal.
PART 03
Ask early to avoid a rush
Get lender papers ready and ask what will happen if the appraised value is lower. Know the dates in the deal.
A SMALL STEP YOU CAN TAKE
One thing to check today
Ask the lender when the appraisal will happen and what options exist.
HOW TO USE THIS
If you are buying or selling
If you are buying
Do not assume a lender will loan based only on the agreed sale price.
If you are selling
A buyer may still face loan checks after accepting an offer.
SAVE THIS LIST
Three questions worth asking
- Will this lender require an appraisal?
- What happens if the appraised value is lower?
- What financing and contractual options are available?
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