Lending based off appraised value

[Dakota Rice]

I’m trying to find a lender that will lend based off appraised value. I’m under contract on a house right now that should appraise for much more then it’s under contract for.

Any recommendations?

[Alex Roter]

Hey @Dakota Rice, lenders will typically use the lessor of the two values to reduce the risk on their end. Can you ask the seller to raise the purchase price and provide seller credits to cover the closing costs? Some lenders would even allow for you to apply any additional seller credits towards principal loan balance reduction (which can provide you with significant amount savings in interest over the life of the loan).

Hope this helps.