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What Happens with a Low Mortgage Appraisal on a Home?

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Julie Vanderblue is quoted below in an article written by Brandon Cornett, of www.HomeBuyingInstitute.com:

Reader question: "Some friends of ours recently bought a home in the same area where we are planning to buy. They had a problem with their financing because the appraisal report came in lower than the offer / purchase price. Is this a [...]