Most all fixed rate loans are sold in the secondary market and there are guidelines for them to be accepted. Even when they are not sold and instead held by a local bank, the local bank generally uses the same underwriting guidelines to process the loan. That way if the bank ever wishes to transfer servicing the new lienholder knows it meets appropriate criteria.
The value that will be used by the lender is the lesser of the appraised value or the selling price.
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