Posted on: 18th May, 2009 01:40 am
hi... i'm a first time home buyer, closing on the 28th of this month. appraisal on the property was done 3 weeks ago, i still havent seen any result despite of ff-up. the lender told me it's still not available since it's a foreclosed house. can i back out from closing on the property if i am not satisfied with the result of the appraisal once i receive it?
Hi
You ought to be able to back out of closing if you aren't satisfied with the property appraisal results. But once you close on the loan, you can't back out. Until you sign the loan documents, you are under no obligation, whatsoever, for the loan and are free to choose any other offer that you think is suitable for you.
You ought to be able to back out of closing if you aren't satisfied with the property appraisal results. But once you close on the loan, you can't back out. Until you sign the loan documents, you are under no obligation, whatsoever, for the loan and are free to choose any other offer that you think is suitable for you.
If you have any questions and/or concerns about this transaction, I would suggest you handle that all right now. This is a long term commitment and you need to ask whatever is on your mind. I hope this helps...
What is the hangup with the appraisal? did you pay for the report? if so, you are entitled to a copy, and to be certain you get it, please request it in writing. your right to a copy is supposedly predicated on your written request, so just be certain.
first of all, thanks for the responses. i appreciate it a lot.
yes, i paid for the appraisal... was charged $495 to be exact.
my realtor told me, i can always ask for a copy after closing... duh?!?
i applied the loan under FHA, am i right to assume that FHA won't allow the loan to be approved if the appraisal is less than the purchase price?
yes, i paid for the appraisal... was charged $495 to be exact.
my realtor told me, i can always ask for a copy after closing... duh?!?
i applied the loan under FHA, am i right to assume that FHA won't allow the loan to be approved if the appraisal is less than the purchase price?
Hi
If you've paid for the appraisal you do have a right to get a copy of the appraisal. Ask your lender why they cannot give you the copy of the appraisal before closing. After all, they've charged you $495 for it. The FHA will not disapprove of the loan if the appraisal is less than the purchase price. But you'll be needed to pay that difference in a higher cash downpayment.
If you've paid for the appraisal you do have a right to get a copy of the appraisal. Ask your lender why they cannot give you the copy of the appraisal before closing. After all, they've charged you $495 for it. The FHA will not disapprove of the loan if the appraisal is less than the purchase price. But you'll be needed to pay that difference in a higher cash downpayment.
with an fha loan, you would have signed an amendatory clause that provides you with the ability to renegotiate with your seller in the event an appraised value is less than the purchase price. you can do that, or if you're happy with the price you are paying and you have the assets, you can do as savior said and simply pay the difference.