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Hi! My appraisal amount came in $6,000 more that my purchase price. What exactly does that mean for me as the buyer? My loan officer seems pretty excited about this but I honestly don't understand how or if this will benifit me. I really want to understand but no one is taking the time to explain what this means. I guess they think I know. Can someone break it down to me in baby talk please???
It's an FHA non conventional loan. I'm putting 5% down. The purchase price is $136K
@Anonymous wrote:Hi! My appraisal amount came in $6,000 more that my purchase price. What exactly does that mean for me as the buyer? My loan officer seems pretty excited about this but I honestly don't understand how or if this will benifit me. I really want to understand but no one is taking the time to explain what this means. I guess they think I know. Can someone break it down to me in baby talk please???
It's an FHA non conventional loan. I'm putting 5% down. The purchase price is $136K
As long as it's just the appraised price that's higher, it doesn't really mean anything. They're really more of a guide. I don't even look at appraised values when house shopping as they're pretty much meaningless. If the market will bear selling a property at $1 million, it's going to sell for that whether or not the appraised value is $900,000 or $1.1 million.
If it's the assessed value, that means higher property taxes. It also means the market you bought in is depressed and selling for under assessed/taxed value.
its a good thing because it gets you closer to no PMI, if your appraised value vs the loan is greater then 20% then that means no PMI
Appraisals are opinions based on facts and experience.
Someone believes you home is worth a little more than you are buying it for.
This reduces hurdles in you loan process.
Congrats and GL!
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@Anonymous wrote:Hi! My appraisal amount came in $6,000 more that my purchase price. What exactly does that mean for me as the buyer? My loan officer seems pretty excited about this but I honestly don't understand how or if this will benifit me. I really want to understand but no one is taking the time to explain what this means. I guess they think I know. Can someone break it down to me in baby talk please???
It's an FHA non conventional loan. I'm putting 5% down. The purchase price is $136K
It means you're starting out with $6K equity in your home. Congratulations!!