Loan amounts are based on the lesser of the purchase price or the appraised value so if the house your buying appraises for less than the purchase it for, you have one of four options.

• Ask the seller to drop the sales price to the appraised value, please note they do not have to agree to this.
  • You pay the difference of the appraised value and the purchase price in cash as you will not be able to include the difference in your loan amount.
  • You and the Seller can agree to a new purchase price between the two numbers (sales price and appraised value)
  • You can cancel the contact and receive a refund of your Earnest Money assuming the contract was contingent on the appraised value meeting the sales price.