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Financing, Mortgages and Insurance What options are best for you and your situation?


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  #1  
Old 2013-03-25, 12:19 PM
Toogy Toogy is offline
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Default New home appraisal less than selling price?

Anyone have a mortgage lender appraise your new build for less than the agreed upon sale price from the builder?

My new house is currently being appraised and I'm waiting to hear the outcome, I honestly never knew this happened with new builds.

Thanks
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Old 2013-03-25, 12:25 PM
TKG26 TKG26 is offline
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Woukd that be to calculate property taxes or reconstruction in the event of an insurance claim?

Not sure good question.. I'll stay tuned for the answer.
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Old 2013-03-25, 12:27 PM
Toogy Toogy is offline
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It's the mortgage lender that ordered the appraisal... is this not common?
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Old 2013-03-25, 01:38 PM
Carlisle Carlisle is offline
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i am in the same boat. Our lender is requiring our house to be appraised when it is 97% complete.

If they apprise it for less that what we are paying the builder then we wont be able to get a mortgage with this lender, and have to settle with another lender at a higher rate....
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Old 2013-03-25, 02:09 PM
Toogy Toogy is offline
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And our closing date is this Thursday!! Talk about stressing me out!
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Old 2013-03-25, 02:36 PM
Carlisle Carlisle is offline
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ours is april 9, and the house is only 70% done... they need it to be at least 97%....
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Old 2013-03-26, 09:21 AM
Toogy Toogy is offline
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Well the appraisal came in fine, but now the mortgage lender want me to delay the closing a week!! I'm not sure I can take this stress any longer! lol
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Old 2013-03-26, 10:25 AM
Trepex Trepex is offline
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Quote:
Originally Posted by Toogy View Post
Well the appraisal came in fine, but now the mortgage lender want me to delay the closing a week!! I'm not sure I can take this stress any longer! lol
Why do they want to delay closing?

I've heard of some lenders doing the appraisals in this market, and I think it's generally more common in cases where they are lending you a higher percentage of the overall value. Then again maybe some lenders are simply more likely to do it than others? Our first mortgage was with TD and we're with RBC for the new place - neither stipulated this as a requirement.
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Old 2013-03-26, 01:29 PM
oakvillehomeowner oakvillehomeowner is offline
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Quote:
Originally Posted by Carlisle View Post
i am in the same boat. Our lender is requiring our house to be appraised when it is 97% complete.

If they apprise it for less that what we are paying the builder then we wont be able to get a mortgage with this lender, and have to settle with another lender at a higher rate....
or you'll have to increase your downpayment to stay at the same ratio.
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Old 2013-03-27, 04:25 PM
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good2know good2know is offline
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Quote:
Originally Posted by Trepex View Post
Why do they want to delay closing?
Ran in to this a few years back. House was not complete to satisfaction of the lender. We refused to sign to Tarion declaration (substantially complete and ready for occupancy). The occupancy permit could not be issued.

That generated some excitement with the builder

They were running around like ants for three days and got it all 'done'. Then we spent 8 months and over 30 days worth of trades visits to get it done 'properly'.
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