If you get denied a mortgage because of appraisal, what does this mean?

Question

The bank told me that we were denied a mortgage based on the appraisal of the home. Can someone explain that in more detail?

Answer 1

the mortgage company (or other lender) does not think the property is worth the asking value. All is not lost, go back to the vendor with a reduced offer based on the lenders valuation

Answer 2

What type of loan were you getting?  Purchase, no-cash out refi, cash-out refi, what?  

Basically, an appraisal is a professional estimate of the value of one's property. Apparently, the home did not appraise high enough for the type of loan you were seeking.  Did the lender suggest lowering your loan amount?  This happens, i.e. home doesn't appraise high enough, but lenders can sometimes (NOT ALWAYS) work around this by lowering the loan amount.  On a purchase, it's a bit more complicated because normally the purchase price has to match the appraised value (that stipulation is in most real estate purchase contracts) and you get into amending the contract, etc.     I would contact your mortgage company and see what options are available.

Answer 3

The house is selling for more than the appraiser says the house is worth.