With the housing market still struggling to improve, many potential homebuyers are running into problems with low appraisals. Frankly, it’s difficult to get a mortgage approved when the home doesn’t appraise higher than the price of the mortgage.
Here are three things you can do if the appraisals come in too low.
• Request a second appraisal: Request a second appraisal from another company. It’s possible that a second appraisal will come out better. The seller should point out any recent improvements to the home that will help increase the value.
• Increase the down payment: If possible, increase the amount of the down payment to bring the cost of the mortgage below the appraisal price.
• Negotiate the sale price: A low appraisal is an opportunity to negotiate the price of the home with the seller. The seller will be forced to realize that the low appraisal will make their home more difficult to sell.
A lower than expected appraisal doesn’t mean your new home purchase is impossible. Work closely with your mortgage specialist to explore every option available to you.
Contact the mortgage specialists at Midland Mortgage Corp. today to apply for a home mortgage.