It’s important to understand what your mortgage lender does when the appraisal comes back too low. A low appraisal can affect how much a mortgage company will loan you and how much you’ll have to pay out of pocket.
For example, if the home you want is $200,000 but is only appraised at $170,000, your mortgage lender will loan you the appraised amount and you’ll have to come up with the extra $30,000 on top of your down payment. Your other option is to try to renegotiate with the seller.