What to Do If Your Home Purchase Appraisal Comes Up Short

If a lower-than-expected appraisal comes in, you’ll need to be prepared to pivot. Since a home is collateral for your mortgage, your mortgage can’t be approved without an appraisal report on the home’s value. Appraisals aren’t guaranteed to come in at your contract price, and your loan options change if your appraisal comes in short. Here’s what to do if this happens. How a low appraisal changes your loan options When you’re buying a home, lenders will extend a loan on the lower of either your contract price or the home’s appraised value. This is a critical distinction, because if an appraisal comes in lower than …