Dear Edith: If a house appraises lower than the loan amount what are the options? — D.W.

Answer: Let's assume the sales contract says the purchase is contingent upon (or depends on) the buyer's obtaining a certain amount of financing. Then, because of a low appraisal, the mortgage company won't make that big a loan. At that point it is sometimes helpful to request a re-appraisal.

Otherwise, the buyer can withdraw from the deal with the earnest money deposit being returned. ...

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