what happens if your house doesnt appraise for what it is being sold for?

now i'm worried...we are getting a house for $383k what if it doesnt appraise for that?

Re: what happens if your house doesnt appraise for what it is being sold for?

Then the bank probably wont mortgage it.
What makes you think it wont appraise for that?

Re: what happens if your house doesnt appraise for what it is being sold for?

Its not that the bank won't give you a mortgage, but you may have to come up with more cash or renegotiate with the seller.

For example, if your putting down 20% and the house price is $383K, then the bank will loan you 80% of $383K ($306,400)

but if the house is appraised at $375, then the bank will only loan you 80% of $375K ($300,000) and you have to make up the difference ($6400) or get the seller to lower the price.

This is assuming conventional financing. I'm sure there are other mortgage options out there than can help you out with this scenario but its never good for the deal when the house appraises lower.

Re: what happens if your house doesnt appraise for what it is being sold for?

My house didn't appraise for the selling price and I hear that is common but I had no issues but then again we put down over 20%. But I hear the bank may cause you to get less in your mortgage which could be an issue if you are taking out a big mortgage.