Lender Status – Underwriting-Pending Decline

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Viewing 6 posts - 16 through 21 (of 21 total)
  • Author
    Posts
  • #71479
    before40
    Participant

    @richard899 did you ever close on your home?

    #71484
    bdogan914
    Participant

    @before40 I actually canceled my contract on the previous home because the appraisal came back 13k lower and the seller did not want to renegotiate. I am under a new contract and about 15 days from closing. I have seen the suspended status with this home.

    #72065
    williecall
    Participant

    So I found out that my lender status is decline (suspended) also but I know why. The appraisal came back $10k lower than the sale price. Is this automatic decline if seller doesn’t lower price?

    #72066
    Nelsont
    Member

    Yes. The bank absolutely without exception will not issue a loan for more than the appraised value.

    Would you buy a car or anything else for more than the sticker price?

    You will need to find a way to make the loan value match the appraised value. Usually low appraisals are due to greedy sellers who insist on a high asking price against their agents advice. A seller unwilling to come down is either underwater on the loan or also greedy against the agents advice.

    You can also ask for a reappraisal if your agent is confident they can provide comps showing the house was appropriately priced to begin with.

    #72069
    williecall
    Participant

    Thanks for your response. I guess I assumed room for negotiation seeing that it’s being built. A price for something that isn’t there yet may have a market change by the time it’s complete.

    #72074
    Nelsont
    Member

    It’s very rare that in a given year the market fluctuates by 10k in home valuation. Home values tend to mirror the rate of inflation which in a normal year is around 1.5% which means in the 6 months it takes to build your house you are looking at a change of +/- couple thousand at the most. I would talk to your agent and see if they can pull comps to support the asking price.

Viewing 6 posts - 16 through 21 (of 21 total)
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