Choose your lender carefully

We have seen a recent trend toward higher scrutiny in appraised values, and it puts the squeeze on buyers who have provided their lender all the information requested but learn at the last minute that their appraisal is kicked back from underwriting.

the worst case scenario for the buyer (and the seller!) is when the home appraises at value but then the loan underwriter doesnt believe the findings of the appraiser.  In this case, all deadline dates may have passes, and the buyers earnest money is in jeopardy.  Meanwhile, the seller likely has had his home off the market and under contract for weeks or months, and then the deal falls at the final hour.  Fighting over a few thousand dollars of earnest money doesnt help heal the pain for them either - they have to start the process over again.

The best advice is to work with a local lender and someone that you know and trust to give you solid information.  Mortgage brokers, who lend money from various investors, are different from mortgage bankers, who lend their own bank's money. 

Sometimes it is better to pay a little higher rate and work someone with whom you have a solid relationship. 

Appraisal problems can occur in any situation.  Read up on your lender and make sure you are getting solid advice and information.