@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.
