What happens if a property does not appraise high enough?
If the appraisal is lower than expected, borrowers may renegotiate the purchase price, increase their down payment, or explore alternative loan options. Lenders must ensure the loan amount aligns with the appraised value.
Related FAQs
- Can an appraisal expire?
- Why do lenders review property photos in an appraisal?
- What is an appraisal reconsideration?
- What is a comparable sale in an appraisal?
- Why do appraisers adjust comparable sales?
- Why do lenders require an appraisal?
- What is a property inspection waiver?
- Can appraisal waivers be used?
- Can borrowers dispute an appraisal?
- Are appraisals required for Freddie Mac loans?