Tag Archive for: purchase price

Property Value = Lesser of Purchase Price or Appraisal; Gift of Equity

This is a reminder that lenders must always use the lesser of the appraised value or the purchase price on the contract for financing and loan-to-value purposes. So, even if we have a rock solid $500,000 appraisal, if the purchase price on the contract is $250,000 – $250,000 will be the value from the lender’s perspective – no matter what. Read More

Closing Cost Credits Too Large? What To Watch For & Do?

Closing cost credits can cover all fees, but if they exceed actual costs, the excess is lost to the seller. Buyers should estimate costs early and adjust credits accordingly before loan documents are ordered.Read More