I accepted an offer for a house at 720k.
Seller is putting 20% down (126k)
Bank is giving an 80% mortgage (576k)
But before giving final approval, bank needs to appraise my home.
I have two questions:
1) How often do bank appraisals fall below asking price? Should I be worried? I believe that the house is worth around what the offer price.
2) what happens if the appraisal is under 720k (eg. it comes at 680k). Would the bank still lend the 576k? In other words, does the bank care that the appraisal is lower than the offer price, or only when the appraisal is lower than the loan amount?