Handguns
Subscribe
Home› Off Topic
Lobstercatcher229
Posts: 4,845 Captain
Fort Lauderdale Area Appraisal Question
Lobstercatcher229
Posts: 4,845 Captain
Hi all,
I am involved in trying to buy a house. We got involved with a lender who chose the appraiser who then appraised the house for enough less than the house purchase price that he says that there will be an extra 3 thousand dollar fee to lend the money. Has anyone run into that in trying to borrow money for a home?
In other words we are trying to buy a house with an agreed purchase price of about 110k, his appraisal is 95k (hard to find much in Tamarac for 95k that you would want to live in, I think that figure is low). So to complete the loan he wants another 3 thousand dollars in addition to the normal lending fees.
I am involved in trying to buy a house. We got involved with a lender who chose the appraiser who then appraised the house for enough less than the house purchase price that he says that there will be an extra 3 thousand dollar fee to lend the money. Has anyone run into that in trying to borrow money for a home?
In other words we are trying to buy a house with an agreed purchase price of about 110k, his appraisal is 95k (hard to find much in Tamarac for 95k that you would want to live in, I think that figure is low). So to complete the loan he wants another 3 thousand dollars in addition to the normal lending fees.
Replies
You can't these days.
Banks use their own so they don't get inflated numbers.
Appraisers that want to stay on the banks approved list will make the appraisal come in under to keep their job. Banks don't want to lend money right now.
If the appraiser is asking for it, forget it!! I just bought a house and the appraisal fees were $450???!!!!
Banks are happy to lend money with 80% LTV.
the 3k is going to the lender and is in addition to the purchase price and closing costs.
Our appraisal fee was $550.
Thanks for relating your experience. I had heard someone say that when a certain politician would say, "I just want to help you, what he really meant was, I just want to screw you." I had felt like I was getting screwed. I guess it goes back to the golden rule: "he who has the gold makes the rules."
good question. on a 95k appraisal and a 111250.00 agreed upon price we are putting down 17650.00
I could be wrong but I don't think the lender is asking you for $3k, I think you're being told that you need to put another $3k down to reduce the Loan To Value amount. That would put you close to 20% down which also should prevent you from having to pay Mortgage Insurance as part of the loan. If my guess is right, the request seems reasonable and may even be in your best interest.
If my guess is wrong, I'm curious as to what the lender is using your $3k for?
CLICK HERE FOR FISH PIX
OK, I am NOT a mortgage broker....... BUT.... Sell Price $111,250 - $17,650 = $93,600 84% LTV
Add in the additional $3k $111,250 - 20,650 = $90,600 81% LTV....
Seems to me that he is trying to get more in line..
These real estate contracts and terms can be hard to read. The way I read his letter is that if he is going to lend money on a property with less than 20 percent down that his company requires a fee to do that. He says that another option to avoid his "fee" is to increase the down payment so that his company isn't in the position of lending more than 80 percent of appraised value.
To all who have helped me understand what is happening I appreciate your trouble. We have dumped this lender and have come up with another source of funds. I just wanted to know if others had experienced this sort of treatment.
Again I appreciate the wisdom of the forum. The lender is considering the LTV as 95 thousand so if he lends us the 93,600 he is really making close to a 3 percent down loan in his estimation. For us to enjoy the privilege of his services we have to pay that 3 thousand dollar fee because of our "low" down payment in relation to what his appraiser says it is worth.
It is sort of complicated mumbo jumbo game and the low appraisal brings up some new terms that I was unaware of previously.
If you want the house then put more cash out or get the seller to lower his price.
No kidding.
You might want to do that if you believed that the area was increasing in value and that the appraisal was on the low side. Time will tell if your opinion was correct.
Tamarac
and you would probably lend me 90k at 5 percent if I gave you the 90K (in fees and other charges):wink