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Home Appraisal Question

Does the lender want the home appraisal to match the loan amount that you borrow from the bank or the appraisal of the house itself?

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August 24 2013 - US
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Answers (4)

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During this sale, due diligence, it was discovered that the foundation wall had a crack and the corner of the garage had settled slightly.  It was then written in contingency that it get fixed.  Should I inform the lender, who I guess informs the appraiser, that this work was found and fixed. I want the appraisal to be as accurate as possible. I don't know if this could have an impact on what the appraiser looks for when doing their appraisal.
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August 25 2013
The lender has no control over what the appraisal comes in at.  The appraisal normally comes in at what the purchase agreement amount or maybe a few thousand above, but usually not more than that in that the appraiser knows what the home was listed for and possibly even the selling price.  The sales price being a fair and honest price in an arms length transaction is what the bank is looking for and that should be the purchase amount.  If it comes in less, the bank will still loan, butt you will have to pay the difference.  If it comes in more, the bank bases the loan on the lowest of the purchase price or appraisal.
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August 24 2013
The lender wants the property to appraise for AT LEAST the Purchase Price, not loan amount.  Anything under the purchase price will alter the down payment/loan amount ratio.  The lender will only loan on the amount of the appraised value minus the down payment.  If it appraises for more, that is OK.
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August 24 2013
The appraisal value should match the price you are paying for the home.
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August 24 2013
 
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