Property Valuation
When a Kentucky appraiser's value conclusion is significantly lower than the contract price, the lender's underwriter will likely:
AAutomatically approve the loan at the contract price
BLimit the loan amount to a percentage of the appraised value
CRequire the buyer to increase the down payment or renegotiate the price
DBoth B and C✓ Correct
Explanation
When the appraisal is below the contract price, lenders base the loan on the lesser value, requiring the buyer to either increase their down payment to cover the gap or renegotiate the purchase price.
Related Kentucky Property Valuation Questions
- A Kentucky appraiser must retain a copy of their completed appraisal report for how long after the date of the report?
- A Kentucky appraiser performing a drive-by (exterior-only) appraisal provides a report that:
- In Kentucky, which professional credential is required to perform appraisals for federally related mortgage transactions on properties valued over $400,000?
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- When making adjustments in the sales comparison approach, if a comparable property has a feature the subject property lacks, the appraiser should:
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- Which type of property would most likely be appraised using the income approach?
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