Step 8. Loan Review

Decide loan program, loan term, down payment and rate. There are no issues, if the Apprisal value comes higher. Your agent can now remove Apprisal contingency if the value comes at the asking purchase price. You may negotiate with seller if the Apprisal came low. Lender gives loan based on the lowest of the purchase price or Apprisal value. Ask you agent to help with negotiation.
If seller does not agree, you can cancel the contract or bring the difference between the Apprisal price and purchase contract. For example, if you are putting 5% down and the Apprisal value came $390,000, 10K less than the purchase price of $400,000, you will need to bring $19,500 (5% down) and $10,000 (difference), a total of $29,500 as down payment.
Apprisal report may ask for some repairs to be completed or fix compliance issues like installation of Carbon Monoxide, smoke detectors and double strapped the water heater. Appraiser will perform final inspection to ensure repairs are done which cost $150 additional to regular apprise fee of $550 - $750.

Revised LE - You will receive another LE loan estimate if loan amount or interest rate changed based on the Apprisal value. All LE must be acknowledged. It is very important that you keep an eye on lender and loan processor email daily and respond to them right away.