My realtor has explained it but I just need this dumbed down. When I offer $5,000 in appraisal gap coverage, what does that mean? Does it automatically mean I’ll pay that, or in what specific situations will I pay it?
Maybe I just don’t get what “appraise” means but the whole idea is kind of confusing.
In: 2
It just means if the house doesnt appraise at the price you pay for it, the bank is going to need a larger down payment to get their loan to value metric in acceptable range.
My realtor has explained it but I just need this dumbed down. When I offer $5,000 in appraisal gap coverage, what does that mean? Does it automatically mean I’ll pay that, or in what specific situations will I pay it?
Maybe I just don’t get what “appraise” means but the whole idea is kind of confusing.
In: 2
It just means if the house doesnt appraise at the price you pay for it, the bank is going to need a larger down payment to get their loan to value metric in acceptable range.
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