The appraiser who visited your home and provided you with a detailed appraisal report is licensed and experienced in your market area. Therefore he has a much greater knowledge of the factors that affect your local market and a more in depth understanding of where that market is heading and why, i.e. local jobs increasing/decreasing, financing availability, local government programs, demographics etc. Zillow bases their estimates on public information such as tax assessments, foreclosure rates in your area, # of sold properties vs. current listings, days on market etc. This is all useful information to a certain extent but only represent part of the picture. Especially in smaller markets these estimates can vary widely in both directions and can be skewed by outliers. These outliers can be a house selling for far more than it would otherwise but the seller included an incentive such as a new boat or car, OR a house selling for much less BUT the buyer included in their offer to the seller a piece of land or another property in addition to the sale price. Zillow doesn't know these things but your local Realtor and Appraiser should. Congratulations on such a great appraisal!
There have been some very good points made here, I will add a few not mentioned and try not to be repetitive of what has already been said. In Maine Mortgage brokers can no longer make money off the Yield Spread Premium (YSP) but rather are compensated the same no matter what the rate is. I thought this was part of the Dodd Frank bill that recently passed but it may only be a state issue.Secondly, if you don't HAVE to buy in Portland Maine but are open to looking in the surrounding towns you can apply for a RD Direct loan rather than an RD Guarantee. The RD Direct allows flexibility for lower credit scores but isn't allowed in towns with populations over a certain threshold. RD Direct is also tougher on income limitations since it is founded by the government directly and is designed to encourage home ownership for those who may not be able to qualify in the secondary market. FHA doesn't require as high of credit scores to qualify and as someone mentioned you can have a non-owner occupant co-signer. The big difference between RD and FHA is that RD is 100% financing and has a funding fee rather than monthly mortgage insurance. FHA requires 3.5% down and has a hefty monthly mortgage insurance premium.
Thanks everyone! After doing some digging and asking around, I'm glad I didn't waste any time or money! No one I spoke to had anything positive to say and Reply told me they would provide references for me which they never did!
They only list very basic information and don't display any photos.
Depending on how high risk your credit is, you may be able to get a loan. Assuming the appraisal comes in at the assessed value of $289k, you would only have a loan to value ratio of 25%. I would go in to some of the smaller local banks such as Kennebunk Savings, SIS and York County Federal Credit Union. If traditional banks aren't willing to lend to you then you can try a hard money lender. They will charge you a higher interest rate but you will get the loan you need.
I assume you mean listed online with a service such as Vision Appraisal, like they have in York and surrounding towns. Towns have to pay for this service on a yearly basis and some towns don't feel it is worth the expense.However, you can go to your local tax assessors office to find out what any property is assessed at. I know it's not as convenient but it's public information that anyone can obtain. These assessments often do NOT represent an appropriate value for any particular property, so be careful how you use this information.
I don't see how you could go wrong locking in at 4.625%. The last thing you want to do is wait for rates to go any lower and have them bounce back above 5%. Frankly anything below 5% is awesome, especially with no points!