Obstacle 05 · Appraisal preparation
Prepare for a lower appraisal before you offer.
A strong offer still needs a plan if the appraisal is below the purchase price. Start by checking what additional cash or financing flexibility you could actually use.
What is an appraisal gap?See why a lower value may change the loan amount and cash needed.Could my financing have more flexibility?Ask Tony to evaluate your cash, approval and a possible higher loan-to-value structure.
A few things matter.
- How much extra verified cash could you contribute while keeping a comfortable reserve?
- Could a different loan-to-value structure fit, and how would payment, pricing or mortgage insurance change?
- What happens if the shortfall exceeds the capacity you have reviewed?
Know your capacity before making a commitment.
Financial preparation does not tell you what appraisal terms to offer. Your agent and attorney advise on the protections, obligations and implications.