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RavensTillIDie

Buying a House

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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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Supposed to get an offer on my house yesterday but apparently the buyers real estate agent had some car issues. She said she'd have it in today but it's almost 5est and we are still waiting on it. ¬¬

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Alright, seller is making the repairs. Looks like I will finally get to close on this sucker.

Then the real work begins. And the real spending...(sobs)

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1 minute ago, TENINCH said:

Buyers backed out because they didn't like the driveway 

Is it incredibly steep or something?

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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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