You may have questions about your appraisal, such as: If my appraised value comes in higher than expected, do I need to bring as much for my down payment?
The answer to this question is yes. Your mortgage terms remain the same.
That being said, we use the purchase price to calculate the down payment you will need to have. For example, if you are purchasing your new home for $200,000, but it appraised for $220,000, we would calculate your down payment from the $200,000.
In reverse, if your home value comes in at $190,000, but you are purchasing the home for $200,000 you would have to make up the $10,000 difference by bringing more money to closing. Another solution would be when you are putting in offers, you need to make the purchase price contingent upon the appraised value. This way you are protected if the home value is not equal or greater than the purchase price.
If you have any other questions, please feel free to contact me at (801) 971-3956.