Quick question guys. I know things are crazy right now so a lot of houses going for over asking. With that said, I’m still confused a little on how appraisal GAPs work. So for example….if a house is listed at $250k and I put an offer in for $255k and it gets accepted…then the appraisal comes in at $250k… everything I’m reading is I would have to pay the $5k if seller isn’t willing to negotiate…BUT if I have a conventional loan and am putting 15% down ($38k in this example) and my actual loan amount from the bank is around $217k, does it even matter that the appraisal was less than the offer price that was accepted, since the loan is still way less than the appraisal price?
My understanding is that the appraisal is for the bank obviously to make sure they aren’t loaning me an amount of money that is way more than the house is worth. So if I’m doing 15% down and the appraisal is just a few k less than selling price, do I have to worry about paying the difference?