McDowell Mountain Ranch Trail Talk

Do lenders use the appraised value or sale price for a mortgage?

Home / Buyer Help FAQ / Do lenders use the appraised value or sale price for a mortgage?

If the appraised value and the sale price of a home are different, what will lenders use when granting a mortgage to a Home Buyer?

Whatever is lower.  Lenders want as little risk as possible, so they will look at both the sale price and the appraised value and then make a loan based on the lower of the two numbers.