House listed for $594K. Offered $595K + $20K up to $625K or appraisal plus $20K. All of that was straightforward enough.
I kept explaining to the lender I would pay the appraisal gap with cash on hand. Lender would only be underwriting the appraisal amount or $595K. Whichever was lower. Had the conversation three times, and each time, the lender said it was flexible. The estimates came in each time financing the appraisal gap of $20K as part of mortgage.
How can a lender underwrite for a mortgage higher than the only appraisal?
This same lender also gave the appraisal to my real estate agent who then gave it to the sellers after the appraisal came in lower than expected without our consent.
Felt off but think there has to be a reasonable explanation. At least for the appraisal gap part.