We met with RA yesterday, we both fell in love with the house. I asked the RA what other homes in the area were appraising for Per Dallas a good RA will know the market and should be able to tell us what homes in that area as selling/appraising for. Her response- when the bank does the appraisal they will have it appraised close to the contract price since so many MC have inflated LTV's in the past.Translation to me was LTV would be low or at the sell price = no equity? How can the banks use a LTV that is close to the sell price if it in fact appraises at much higher? The house is listed at 189K ( wouldn't it have to appraise at the sell price?)we have researched it and found the FMV is 119,200. She said the house was 2 years old, the last appraisal on record was dated 12/13/2005 and the house when built was recorded as sold for 139K. She also said they work with Suntrust Mortgage, has anyone heard anything about this company? All we want to do is avoid PMI and if the bank will use an appraisal at contract sell price vs true appraisal then to me it looks like they are just trying to make us pay PMI? Thoughts or advice?
That sounds disheartening and like just an added fee for the lenders profit. On another note... the house we are looking at with the 119K FMV & asking price of 189K we are trying to figure a reasonable offer price that wouldn't be an insult to the owner. My wife spoke to an ex co-worker that owned a house across the street from this house, he told my wife to not pay over 160K for this house. There are a total of 5 - 6 houses for sell in this neighborhood from 160K asking to 189K on the house we would like to get. All very similar floor plans & sq footage but none listed with the same realty company. I don't want the realtor pushing a price on us with it being listed with their company, after all the seller is their customer. What would you think a fair asking price would be considering the info above and the current market?
