Real Estate Topics Forum :: View topic - DOES A BORROWER HAVE TO QUALIFY FOR THE APPRAISAL AMOUNT?

JERRY · Guest

DOES A BUYER HAVE TO QUALIFY FOR THE APPPRAISAL AMOUNT OF A HOME LOAN OR CAN THE OWNER/SELLER SELL THE HOME FOR WHAT EVER AMOUNT HE OR SHE WANTS TO AND THATS ALL YOU NEED TO QUALIFY FOR? WE ARE LOOKING AT BUYING THE HOUSE WE ARE CURRENTLY RENTING WHICH WAS APPRAISED AT $200,00.00. THE HOMEOWNER HAS OFFERED TO SELL US THE HOME FOR 180,000.00. THE LOAN COMPANY I'M TALKING SAYS THE HOMEOWNER CAN ONLY DO THAT IF HE IS A REALTIVE OR FAMILY MEMBER OTHERWISE WE HAVE TO APPLY FOR THE APPRAISAL AMOUNT. PLEASE ADVISE.

nemmar · Site Admin

Jerry,

What type of mortgage lender are you dealing with? Is it a bank that has many branches or just some small lending outfit? Something is odd about the lender's terms. There's no valid reason why a mortgage lender would tell you that you CANNOT buy a house for LESS money then what the appraised market value is. It just makes NO sense at all! If anything, the lender's loan funds are more secure because there is instant equity built up in the loan because if the lender has to foreclose on the house in the near future, then it will be easier for them to sell the house in foreclosure and get their unpaid loan funds back.

The only reason I can think of as to why your mortgage lender has terms that are odd is if they suspect there will be some seller financing. For example, it's possible your mortgage lender is worried about the seller giving you a loan (taking a second mortgage position on the house) for the $20,000.00 difference between the deal reported sales price and the actual appraisal market value of the house. That could be why the lender told you the seller can only do that if he/she is selling to a relative or family member. When someone sells a home to a relative or family member they often give them a discounted price because they are related.

I recommend that you talk to other mortgage lenders and banks to find out what their loan terms are. You should also check the link on my site in my online Real Estate Library mortgage loan pages at
http://www.nemmar.com/real-estate-cat4-47-1---Mortgage-Loans--Finance-and-Economy.html

There are great links from banner ads to Internet lending services that can find you the best rates on all types of loans without you having to shop around to many different banks and mortgage lenders.