QUOTE (dplummer @ Dec 2 2010, 03:48 PM) If a property apprasies for more $$ then the purchase price ,why will the bank only use the purchase price for loan calculating? Yet if you were to re finance at some point the bank would then use the apprasied value for calculating the loan amount. I hope my question is clear & I apoligise in advance if not.
Doug
I think its a case of, "he who has the gold makes the rules." You might be able to find a private lender willing to lend based on an appraisal (check the classifieds on this site...) but I suspect you`d pay a higher interest rate. Then you could refinance conventionally a year or so later based on the then-current appraisal.
Regards,
Michael