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Buying a House


RavensTillIDie

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On 4/15/2019 at 10:39 AM, MWil23 said:

Yeah, @MKnight82

What we did is say that the money has to come from SOMEWHERE. Basically, it could mean:

1. Cash at closing

2. Paying $9,000 worth of realtor's fees and tying that into the mortgage

3. Eating some of the cost of things like title, home warranty, etc. and bringing some cash

Really ANY combination to make up the difference. Their lender is going to cut us a check after everything is subtracted/deducted, so I don't care where that comes from.

Did you not like my idea about carrying financing?  Do people honestly get a home warranty? Lol 

 

Also, if the house appraised for 9k less than the agreed upon purchase price, its not a 9k difference they need to come up with, it should be less. 

For example, if the purchase price was 500k, and the lender was loaning 80% LTV, then that means they are willing to lend 400k with 100k down. If the house appraises at 491k, that means the bank is still willing to loan 80% LTV, meaning instead of giving them 400k in the form of a loan, they would be willing to give them $392,800. Meaning the total funds available to the buyer are 492,800 meaning you are $6,200 short, not 9k short.

If the bank is only willing to loan 75% LTV, that means its 375k in debt and 125k in cash coming from the buyer. In this scenario a 9k difference in appraised value vs 'market value' is really only a $6,750 gap or rather (500,000*.75)-(491,000*.75)

Just an FYI

 

 

…. also I just read your other posts. FHA loans can be tricky because lenders have zero flexibility because of it. For example the lender could have stipulated that it needed to be vacant at the COE, because they cant make FHA loans to non-owner occupied property. That is probably why they told you that you couldn't have an additional week in your house after the COE, because then it wouldn't be 'owner occupied'. They should have just extended the COE by a week and closed whenever you were scheduled to move. 

Edited by N4L
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Just now, theJ said:

Is it incredibly steep or something?

Yeah it's a steep driveway. Levels out at the bottom though. I always liked it because it deterred people coming to the door that weren't invited. Gave privacy from the neighbors and helped keep the house cool during the summer. Only bad part was taking the trash up to the curb.

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On 4/19/2019 at 6:38 AM, TENINCH said:

Buyers backed out because they didn't like the driveway 

Yeah, I was gonna say, sounded like a load of crap (the car trouble thing). 

Don't worry my man, everything sells. Stay the course, the summer is coming

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Made an offer on a place on Saturday and it was accepted but now I'm regretting it. I don't know if it's just It's almost identical to the place I was monitoring back in October of last year that got me thinking I should look into buying, but much cheaper, which is what made me interested in it to begin with. But now that it's accepted, I feel like I gave up too much of what I wanted/had in mind and sort just settled on this place. I think my realtor kind of pressured me into offering more than I had in mind too. I have the inspection tomorrow morning and I guess until Saturday this weekend to pull out if I choose. I'd rather have a couple hundred dollar mistake and eat the cost of the inspection than a multi thousand dollar mistake.

Maybe I'm not ready for this, and maybe I've gotten priced out of what I had in mind in this crappy market. 

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35 minutes ago, skywindO2 said:

Made an offer on a place on Saturday and it was accepted but now I'm regretting it. I don't know if it's just It's almost identical to the place I was monitoring back in October of last year that got me thinking I should look into buying, but much cheaper, which is what made me interested in it to begin with. But now that it's accepted, I feel like I gave up too much of what I wanted/had in mind and sort just settled on this place. I think my realtor kind of pressured me into offering more than I had in mind too. I have the inspection tomorrow morning and I guess until Saturday this weekend to pull out if I choose. I'd rather have a couple hundred dollar mistake and eat the cost of the inspection than a multi thousand dollar mistake.

Maybe I'm not ready for this, and maybe I've gotten priced out of what I had in mind in this crappy market. 

i think if you have any form of doubt, and it appears you have a great deal, you should pull out of the agreement.

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1 hour ago, skywindO2 said:

Made an offer on a place on Saturday and it was accepted but now I'm regretting it. I don't know if it's just It's almost identical to the place I was monitoring back in October of last year that got me thinking I should look into buying, but much cheaper, which is what made me interested in it to begin with. But now that it's accepted, I feel like I gave up too much of what I wanted/had in mind and sort just settled on this place. I think my realtor kind of pressured me into offering more than I had in mind too. I have the inspection tomorrow morning and I guess until Saturday this weekend to pull out if I choose. I'd rather have a couple hundred dollar mistake and eat the cost of the inspection than a multi thousand dollar mistake.

Maybe I'm not ready for this, and maybe I've gotten priced out of what I had in mind in this crappy market. 

If the inspection goes through and something pops up, you can walk away pretty easily...or, walk away now and eat $500 of your earnest money.

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2 hours ago, MWil23 said:

If the inspection goes through and something pops up, you can walk away pretty easily...or, walk away now and eat $500 of your earnest money.

I don't know that I'd lose out on earnest money if I walk away before the inspection, since I'm still in the inspection period. Does an inspection have to take place to walk out in the inspection period? It's scheduled for tomorrow and my understand is I can cancel for any reason after the inspection and get my earnest money back, and just be out what I paid for the inspection. I just need to make up my mind fast, would be more fair to the sellers so they can hopefully get it listed again before the weekend. 

I really wouldn't be surprised if it appraises for less than my stupid offer, which would give me an out too. 

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13 minutes ago, skywindO2 said:

I don't know that I'd lose out on earnest money if I walk away before the inspection, since I'm still in the inspection period. Does an inspection have to take place to walk out in the inspection period? It's scheduled for tomorrow and my understand is I can cancel for any reason after the inspection and get my earnest money back, and just be out what I paid for the inspection. I just need to make up my mind fast, would be more fair to the sellers so they can hopefully get it listed again before the weekend. 

I really wouldn't be surprised if it appraises for less than my stupid offer, which would give me an out too. 

just ask your agent when you can walk away for no charge.

and you don't wan to pay for an appraisal if you don't intend to purchase, they're spendy.

 

Edited by vike daddy
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12 minutes ago, skywindO2 said:

I don't know that I'd lose out on earnest money if I walk away before the inspection, since I'm still in the inspection period.

It depends whether or not you've signed anything. If you don't have a "reason"  to walk away, then you'd probably still lose the earnest money, although I'm not 100% sure.

12 minutes ago, skywindO2 said:

Does an inspection have to take place to walk out in the inspection period?

Yes. For example "Oh no! Termites! Water damage! Water heater! Something random that I think is a big deal" (EX: My wife's cousin, the buyers found "mouse poop" and walked away)

12 minutes ago, skywindO2 said:

It's scheduled for tomorrow and my understand is I can cancel for any reason after the inspection and get my earnest money back, and just be out what I paid for the inspection. I just need to make up my mind fast, would be more fair to the sellers so they can hopefully get it listed again before the weekend. 

Check with your realtor and get it in writing.

12 minutes ago, skywindO2 said:

I really wouldn't be surprised if it appraises for less than my stupid offer, which would give me an out too. 

Also true

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