Absolutely! The property will be appraised the same regardless of having a gift of equity or not. Gift of equity is great in that it'll offset any or all money you'd need for downpayment and closing costs, depending on how much equity is available. You do not necessarily need 20% of the equity based on the contract price, as long as the loan amount is 80% of the appraised value, you'll be able to waive the need for mortgage insurance. The contract sales price is not going ot necessarily be the same as the appraised value, as appraisals is done after the sales contract is executed.
What I would do is speak to our appraisal management company and have them get a ballpark figure from their appraisers in rotation so that I can give all parties involved a good idea of what the true value is. This way the deal gets structured the right way from the very start. If you need a reliable Loan Officer, I am always available to meet face-to-face in our Woodbury office. Good luck!
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax... more
Thank you. I realize there are good and bad people in every line of business. I just seem to keep finding the bad realtors. I have had multiple buyers agents working for me, but inevitably I catch them in lies or some other issue pops up where I move on to another agent, and so on. This is just my experience (and many of my friends' as well) and I am sure there are good honest agents out there, I just haven't found them yet. Thanks to everyone, and LIBOR should fix this issue as I am sure I am not the only one who is confused by this. Try calling LIbor and they don't even know why the form says this, they shouldn't disseminate forms even they don't understand.... more
Actually the best answer is to check with the lender on your next purchase, if they are using the same closing attorney there is nothing wrong with leaving it in his escrow account, although it is a little unusual. If your new lender is using a different closing attorney then the first one should either give you a check ASAP or wire it to the next closing. Your new lender needs to source the funds you bring to the next closing so ask your loan officer how to handle it. Good luck,... more
FHA loans are quite common place since they still offer assistance with closing costs and have much lower down payment requirements that many conventional loans. If you were preapproved by a major bank or financial institution, they already ran your debt to income ratio with the information you provided them. They are required by law to provide you with an estimate of your costs and what your monthly payments would be. If and when you're ready to look at houses on Long Island, please feel free to contact me.
Certified Buyer Representative
Century 21 Princeton Properties