Failed Cash out Refi

[Mckenzy D.]

Hello everyone,

I recently tried to do a cash-out refi for my first property which is owner-occupied in Brockton MA. Unfortunately, things did not go as planned my appraisal came in much lower than I expected. Does anyone have any suggestions on what my next steps should be? Also, are there lenders out there giving out 85-90% LTV?

Best,
mckenzy

[Evan Polaski]

@Mckenzy D., did you prepare a package for the appraiser?  In the future I recommend having a package outlining any and all improvements you have done, as well as having a realtor friend cherry pick some reasonable comps to support your valuation.  

At this stage, if there are a couple comps you think are valid, but the appraiser didn't use, I would contact the bank to contest the appraisal.  Try to find any issues you can in it, and the bank will likely at least take a look at what you have to offer. I have had a bank come up $50k on an appraisal (similar overall market price), because they used comps that were of lower quality, lower rent, didn't include the closest comp in size and rehab due to it selling just outside the window they pulled, etc.