Disregarding the appraisal
When you really like something, like a home, your emotions might get in the way and make you want to do whatever you can to get it. This includes making a more competitive offer to make sure you close the deal. But that might not necessarily be in your favor.
The home will have to be appraised shortly after your loan application is submitted. And here’s the tricky part: if the property’s appraisal value is less than 80% to 97% of the sale price, you’ll most likely need to compensate for the difference by coming up with money from your own pocket at closing because lenders will not give you more than what the house is worth.
If you’re not able to come with the additional down payment, don’t make an offer without an appraisal, no matter how much you want to buy the house.
Read also: 14 Expert-Approved Tips to Get the Best Price for Your Property
