Bank Underwriter issues with loan

[Uriah D.]

Lenders/mortgage brokers:

Have you ever had an underwriter not agree with the licensed appraiser on a property and not be willing to fund the house at the appraised value? Trying to find out if this has happened to you or is legit?

[Chris Mason]

It happens. Rare, but it does. It means that, in the underwriter's opinion, the appraiser stretched what USPAP allows a bit too far to "hit value." The lender (institution, not your LO) will likely order another appraisal, at lender's expense (institution, not your LO). 

In the event that two different appraisers independently come in with an opinion of value that supports (or exceeds) contract price, underwriter will relent and/or it'll be reviewed by their boss and they will veto the underwriter. 

If one appraisal comes in less than the other, the lesser value will be used.