Loan Origination Activities · 27% of the SAFE exameasy
Correct answer: Request the lender ignore the appraisal and use the purchase price
Lenders cannot simply ignore an appraisal — they must use the lesser of the appraised value or purchase price for LTV calculations. The borrower can negotiate a price reduction, bring extra cash, dispute the appraisal with a reconsideration of value, or walk away if the contract allows.
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