I am new to the group and new to real estate. I am in the process of purchasing my first home in chicago through FHA financing and the appraisal came in about 5k under contract price. The home was not in a multiple offer situation and we negotiated for a lower price. Who can I contact to help me renegotiate price? My realtor, lender, or attorney?
Most lenders base the loan on appraisal. They will not lend more than their stated % of the appraised price, whatever the asking price is.
I'd start with your realtor.
Yes, your agent knows how to approach this. For the seller, they should likely just lower the price $5k, as with an fha appraisal it sticks to that property for 6 months for any future fha buyer.
you're in a weak position with the FHA, but it's also a pretty simple one. Either the seller is going to have to drop the price or you're going to have to come up w/ the difference.
This later part is what makes it hard for you, if you had a big down payment then you could use some of that to make up the difference, but if your at minimum it can be hard to find that extra money.