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 …

5 Mortgage Misconceptions Set Straight

Looking for a home loan? Get your facts straight so you can proceed with confidence. Getting a mortgage can be a breeze or a slog, depending on what you know about the process. To get organized and set your expectations properly, let’s debunk some common mortgage myths. 1. Lenders use your best credit scores If you’re applying for a mortgage jointly with a co-borrower, logic suggests that your lender would use the highest credit score between both of you. However, lenders take the middle of three credit scores (from Equifax, TransUnion and Experian) for each borrower, and then use the lowest …