I sure hope we are not forced to accept this.  

I sent out my docusign and the seller didn't sign because of sections protecting me like condition of property and mediation. Should I keep trucking or keep trying to get him to sign by taking sections off the contract??

Can always find some vehicle to accept it.

What returns are you seeing and what are your guideposts you stay within when evaluating acceptable returns?

Then I was sent an Official Approval Commitment Letter with the exact terms Which were acceptable to us, for this deal.

(Hint - You can't accept commissions to be considered).

That’s all I could gather before my offer is accepted. 

This is outlined in Title 18, Section 1725 of the United States Code, which states that any person who knowingly and willfully deposits any mailable matter such as statements of accounts, circulars, sale bills, or other like matter, on which no postage has been paid, into any letter box established, approved, or accepted by the Postal Service for the receipt or delivery of mail matter on any mail route with intent to avoid payment of lawful postage thereon, shall for each such offense be fined under this title.Violating this law can result in a fine for each piece of mail that is improperly deposited.

Bank found lots of issues with that appraisal and won't accept it. 

These are the sellers OFF market that may accept a healthy discount, but these houses come with issues that may be cheap to fix or may be very expensive to fix.