Lender rejected loan due to low appraisal

Lenders will normally notify the buyer regarding the appraisal details and will likely provide a copy of the appraisal report used to the buyer .....its up to the loan officer to communicate with the selling agent in many cases . the buyer should ask if the lender can provide a counter offer approval based on the lower value.... if the buyer is able to bring in more down payment - can the loan be approved ? Just because value is lower than the purchase price - this shouldnt be rejected / declined

Regardless of a desktop or full appraisal, the lender will provide a copy to the buyer. That is the law of the land. Lenders generally don't 'deny' based off a low appraisal, but rather 'counteroffer' - meaning usually they will still lend, but the buyer needs to come up with the cash difference between the appraisal and the purchase price. Deciding if they can or if they want to is up to the buyer. My humble opinion is that I would never give a buyer a dime more than the current appraised value. Paying more than the appraisal was essentially unheard of until the past three years. Now it is an epidemic. I lend for properties in MN, WI, IA, ND, SD. Find me at Wi-MortgageBroker.com - Cambria Mortgage, NMLS 274132