Financing in New York>Question Details

Hbedder, Home Buyer in New York, NY

We are preapproved for a mortgage. Is that the amount the bank will give us? How does the down payment figure into this?

Asked by Hbedder, New York, NY Fri Oct 5, 2012

Help the community by answering this question:

Answers

9
Christopher Pagli - ABR, GREEN’s answer
Hi, Typically the amount on your pre approval is the maximum they will lend based on the information you provided and they verified. Check the wording, it can either say a "loan amount" or "purchase price of". If it is the loan amount that is not including your down payment so add that on to your home search price. If it says purchase price then that is including your down payment.

Sincerely,

Christopher Pagli
Accredited Buyer Representative
914.406.9023
1 vote Thank Flag Link Fri Oct 5, 2012
The amount you are pre-approved for is the maximum the bank will lend you. The actual amount will depend on how much the proeperty you contract to buy appraises for. The lender will lend you no more than 80% of the appraised value or contract pricce, whichever is less. The downpayment is the difference between the contract price and the loan amount. Typically 10% of the purchase price is put into escrow with the seller's attorney upon signing the contract. The 90% balance , including all of the loan proceeds, is paid at closing.

Michael Richman
Licensed Real Estate Associate Broker
Bellmarc Reatty
681 Lexington Avenue
New York, NY 10022
Phone 212-688-8530 x223 Cell 917-991-2528 Fax 212-758-7495
Email mrichman@bellmarc.com
1 vote Thank Flag Link Fri Oct 5, 2012
Your loan officer should be answering any questions you may have, therefore consider a consultation...
1 vote Thank Flag Link Fri Oct 5, 2012
Typically, it is the maximum that the bank will lend you. The loan amount is different. Check the letter and see if it says purchase price or loan amount.

Sergio Ayo
Licensed Real Estate Agent
Certified Cartus Relocation Specialist
Bond New York Properties LLC
1776 Broadway 19th Floor
New York, NY 10019
Office: 212 582 2009
Mobile: 917 678 4164
Fax: 646 666 2395

Bond New York can assist your friends and family anywhere in the World including the U.S., Canada, PR and the U.K. We are members of the largest Relocation Network in the nation. Contact your agent today to find out more.
0 votes Thank Flag Link Mon Nov 5, 2012
Typically it depends on how the Pre-Approval is written. When I personally write Pre-Approvals, the amount listed is the maximum purchase price. If it is an FHA loan it takes into consideration a 3.5% down payment. If it is a conventional loan I would have had the conversation with the borrower discussing how much of a down payment it was based on, depending on their goals and situation. I would speak with your loan officer and have them clarify these things for you.
0 votes Thank Flag Link Sat Nov 3, 2012
Your mortgage officer who gave you the preapproval should have gone over this with you. Give them a call. The type of property (SFR, multi, condo or coop) and the type of loan determines the down payment. They should also have given you a GFE (Good Faith Estimate). You will need the money to pay your closing costs besides the down payment. The preapproved amount for a mortgage is the mortgage amount. The mortgage officer should have given you the parameters of the real estate tax (if not a coop), homeowners' insurance, common charges if a condo and mortgage insurance if applicable.
0 votes Thank Flag Link Fri Oct 5, 2012
Hbedder, you really need to go back to the lender and start again, or maybe another instituation. We can't answer your question without knowing all the facts, we weren't there during the consultation. We don't even know if you were pre approved properly or if what you simply have is a prequalification, and I say this respectfully simply because of you line of questoning which are fair but you should have had understood what you have before you walked away. Hopefully this was not an excercise you did on line.
0 votes Thank Flag Link Fri Oct 5, 2012
it should say in your pre-approval letter what type of property you are approved for, coop or a condo. You have to factor in at least 20% downpayment (some coop building ask for 25 or 30% - have to ask before considering) and all closing costs that vary for coop and condo and also depend on whether you are buying directly from a developer/ sponsor or a re-sale.

Let me know if you would like me to send closing costs estimates for coop and condo
evr206@gmail.com
Elena Ravich
Rakita Realty
646 593 7207
0 votes Thank Flag Link Fri Oct 5, 2012
You should have received a clear picture of how your down payment and closing cost work. If you are confused or would want a teammate throughout your entire transaction don't hesitate to reach me. The down payment is subtracted from your loan amount. Also realize the down payment and closing cost are two different aspects of the loan process.
0 votes Thank Flag Link Fri Oct 5, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer