How appraisal inaccuracies can impact your mortgage application

On Behalf of | Mar 26, 2024 | Real Estate

Being able to afford a real estate purchase can depend on whether you get approval for your mortgage application. Some people with enough money might not need it, but most property buyers use this option to access adequate funding for a sale. However, numerous factors can affect whether a lender will approve your application, such as your financial standing and the results of the property’s appraisal.

It is usual for the property and appraisal value to have a slight difference, but it can affect your mortgage if the gap is too wide. These inaccuracies can cause complex issues that can impact you upfront or in the future, such as making the property less affordable, preventing you from refinancing the mortgage or reducing the possible equity you can have over time. Because of these scenarios, addressing appraisal inaccuracies should be a priority when purchasing property.

What to do about appraisal inaccuracies

If you think the appraisal results on the property you are buying are unfair or inaccurate, you can request your lender to reconsider it. By performing a reconsideration of value (ROV), you can have the chance to inform your lender about any mistakes or misunderstandings that may have influenced the appraisal process. Some lenders can make this step a standard part of the process, while others would inform buyers about it if they need to raise any appraisal issues.

Addressing real estate sale issues appropriately

Facing mortgage problems and other issues during the sale process can be scary, especially if you have no idea what to do about them. To avoid finding yourself in this situation, you could seek legal counsel before kicking off the process. Experienced guidance can put you at ease as you go through each step of the process while addressing issues that may arise.

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