Finance
A New Hampshire buyer's lender orders an appraisal. The appraisal comes in $15,000 below the contract price. The lender will base the loan on:
AThe contract price
BThe lower appraised value✓ Correct
CThe average of the two values
DThe assessed value
Explanation
Lenders base their loan calculations on the lower of the appraised value or the contract price. If the appraisal is below the contract price, the buyer may need to make up the difference in cash or renegotiate with the seller.
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