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The banks use "comps" to figure out the maximum loan value. Assuming the housing nearby as similar, their actual sale price provides the price signals markets
by coredog64 10y ago
The banks use "comps" to figure out the maximum loan value. Assuming the housing nearby as similar, their actual sale price provides the price signals markets crave.
- chrisabrams 10y agoComps have nothing to do with loan value. Your income, credit, and assets and debt decide what your max loan value is.
- aaronblohowiak 10y agoyour financing can be denied if the house doesn't appraise, depending on your deal with your lender
- brandmeyer 10y agoAnd while the appraisal is supposed to be independent, the appraiser knows the contracted sale price of the house at the time of the appraisal.
- deleted 10y ago[deleted]
- chrisabrams 10y agoWell, my response was to a statement that has been edited :/