Uncategorized April 3, 2016

Your Appraisal Came Up Short, What Next?

If you are buying a home in Lynden, you are probably familiar with how the loan approval and appraisal process works. They tend to be a cohesive part of the process. If details are still somewhat fuzzy, this is it in a nutshell: if your appraisal doesn’t come back at the negotiated contract price the seller and buyer agreed upon for the Lynden home for sale, the loan options can change. If this has happened to you, or you are worried it could happen, you are probably familiar with the sense of panic that goas along with this scenario. However, don't waste precious time stressing about this just yet. As a long time Lynden Realtor, I have some tips on how to get past this speed bump and sail into closing!

If you put in an offer on a home for sale in Lynden and the appraisal comes up short, the first step to take is dispute. Work together with your Lynden Real Estate Agent and your lender to go over a few key aspects. Establish whether or not the Lyndn appraiser included all the relevant comparable sales. Your lender will typically consult with your Lynden realtor and then give their professional opinion on whether or not it is advisable to dispute the value.  If so, the lender will present a case for dispute to the bank’s appraisal department. From here, you can expects one of two things to transpire: The value of the home for sale in Lynden is revised to match your contract price and everything continues as normal OR the value is selected as being appropriate for the property. If this happens, you and your Lynden real estate agent can ask the seller for a reduction in property price.

Most of the time, they will oblige. After all, whether it is your offer or another offer, the appraisal is going to continually come back roughly the same so this is something that will they continually deal with unless the market changes quickly or someone wants to close the gap with cash. If they refuse, you have still have some more options. Also, keep in mind that due to federal regulations, this process is not usually quick so you might need to get an extension on your contract.

If the seller refuses to lower the price on the home for sale in Lynden, you can bridge the gap by offering more of a down payment. If you can afford to do this, there is the perk of a lower monthly mortgage payment. Which is a nice perk. However, your lender will have to decide if you have the reserves left over to still qualify for the loan.If putting more money down simply is not a possibility, you aren’t out of options. You can keep your down payment the same and get mortgage insurance.

In any real estate transaction, it is very important to work with a qualified Lynden real estate agent. Part of our job is not only guiding you through the process, but also helping you trouble shoot when things don’t go according to plan-such as the appraisal coming back short. There are always options, and a good realtor in Lynden will know just what those options are. For more info, call 360-410-0848.