Finance
A Connecticut buyer's loan is being processed. The lender orders an appraisal that comes in $15,000 below the purchase price. Which outcome is most likely?
AThe lender automatically approves the full loan amount
BThe buyer must renegotiate the price, pay the difference in cash, or cancel the contract✓ Correct
CThe seller must immediately lower the price by $15,000
DThe appraiser is required to revise their value upward
Explanation
Lenders base their loan amount on the lesser of the purchase price or appraised value. If the appraisal is low, the buyer must make up the difference in cash, renegotiate a lower price, or exercise an appraisal contingency to cancel.
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