You bought a pre-construction condo, townhouse or home several years ago. Now closing is approaching and your lender says an appraisal is required. Your immediate concern: what happens if the property is valued below the price you agreed to pay? That's important. But there's another question worth asking first: are there other eligible financing options for this property?
Different lenders take different approaches
The lender associated with your development may have a project-specific arrangement, sometimes called a blanket arrangement. That lender may not be your only option. Depending on the project, property and application, certain A-lenders may accept an automated valuation or proceed without a traditional appraisal, subject to lender and, where applicable, insurer approval. They aren't available on every property or for every borrower.
What "no traditional appraisal" actually means
It doesn't mean the lender ignores value — it means they may use another acceptable method to assess the property. It also doesn't guarantee financing based on your original purchase price. Your income, credit, down payment, property eligibility and the lender's accepted value still matter, and a physical appraisal may ultimately be required.
Why timing matters
Finding out about a shortfall days before closing leaves fewer options. An early review gives time to examine lenders, confirm your down payment source, assess available equity and identify outstanding conditions. If a shortfall remains, you need a realistic plan and early coordination with your lawyer.
Send CD Mortgages your builder, project, purchase price, deposit paid and expected closing date. We can assess which options may apply and what still needs to be confirmed.