What is an appraisal gap and how do I cover it?

An appraisal gap happens when the appraised value comes in lower than your purchase price. If you're financing, the lender will only loan based on the lower appraised amount, so you'd need to cover the difference in cash or renegotiate the price. For example, if you're buying at four hundred thousand with ten percent down but it appraises at three eighty, you'd need an extra twenty thousand in cash or ask the seller to lower the price. You can also cancel under your financing contingency if you can't cover the gap. The specifics depend on your situation and a licensed lender should confirm your options, and Jon can connect you with one.

Specifics depend on your situation and should be confirmed with a licensed lender. Jon can connect you with one: text (623) 826-0888.