Certain loan programs have rules in place to help govern how they are handled by a lender. It is important to know some of these rules, especially if you are selling a home, in order to help avoid unnecessary difficulty during the process.

Currently , a common situation people find themselves in is that they are trying to sell their home and an appraisal comes back at less than the asking price. These appraisals are important because in most cases a lender will finance more than what the homeâ??s appraised value is. Because of this, often times the seller takes the house off the market, unwilling to sell for a reduced price. It is important to note that only on an FHA loan does that appraisal get logged and stay with the property. On a conventional loan, your appraisal isn't stuck with you at all. You could go out and get a new buyer and new appraisal right away depending on the type of loan the buyer is looking to get. Another option is that the buyer can bring the monetary difference to closing. If the buyer can cover the difference between the asking price and the appraised value, then they can still get the loan. Sometimes, it is best to just give fill disclosure to the buyer; letting them know what you feel the home is worth and that they may need to have a larger down payment. Again, it all depends on the loan program the buyer is looking to qualify for. The bottom line is that a low appraisal does not mean you have to lower the asking price of your home. The current market is seeing many buyers bring more to the closing table to bridge the gap between the appraisal and the asking price on a home the consumer feels is worth it. Even when selling a home, it is important to know about these different loan programs and the rules governing them. As always, please give RP Funding a call at (321) 397-4420 for further information.