A house for sale is listed at $310 000 and you manage to win the competitive bid with an offer of $312000 .The appraisal indicates the value at $295 000.What will be the conventional mortgage loan amount approved by the bank?
A)$248 000
B)$221 250
C)$249 600
D)$236 000

Question

Quizplus · Accepted Answer

Since the conventional mortgage loan will be based on the appraised value, the maximum loan amount will be 80% of the appraised value. 
Therefore, the maximum loan amount will be $236,000 (0.8 x $295,000). 
Since the buyer offered a higher price than the appraised value, they will need to pay the difference ($17,000) as part of their down payment.

A House for Sale Is Listed at $310 000 and You