Finance
A Kansas buyer's lender requires an appraisal. The appraisal comes in at $5,000 below the contract price. What happens?
AThe buyer must immediately cancel the contract
BThe lender will base the loan on the appraised value, potentially requiring the buyer to cover the gap or renegotiate✓ Correct
CThe seller must reduce the price to match the appraisal
DThe lender ignores the appraisal and approves the full loan
Explanation
Lenders base loans on the lower of the purchase price or appraised value. If the appraisal is low, the buyer may need to pay the difference in cash, negotiate a price reduction, or cancel under an appraisal contingency.
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