This is a question for your loan officer. He/She should have specified if the amount included the down payment. If you were approved to finance $271,050 and you will be putting $25,000 down. This will give you $296,050 which is enough to purchase the home. The price reductions on the home does not mean you can't offer even less. You may ask for the seller to pay your closing costs too! You must discuss this with your lender. Depending where the property is located, the home may qualify for special 100% financing programs. I have searched the MLS to see which home you are looking at and there is one in White Oak Estates that fits the description. Please let me know where the home is and I will be happy to look to see if it will qualify for any special programs. I am a Texas Affordable Home Specialist. I am familiar with many grant programs. You should have a buyer's agent working for you and looking out for your best interest. I hope to hear from you soon.
Keller Williams Realty
You are in an enviable position to get the home you really want.
You have many options of how to use your "cash on hand" to make this transaction smooth and easy. It is possible you will not have to use the extra cash beyond the 3.5% required by FHA...plus - maybe your closing costs and the set up of your prepaid account for taxes and insurance.
According to which community the house is in - we may be able to negotiate with power. Our market has not suffered like in other parts of the nation, so the fact that the house has been on the market so long means that either it was not priced or staged well for the marketplace. If you don't have an agent representing your best interest, I am close by.
I would love to bring my experience as a loan officer, title company representative AND more than 20 years as an agent advocating for buyers and sellers to help you get the home you want with the least expense and easiest closing. Would you be open to letting me help you? (936) 441-1314 or email: Kathi@KathiFrank.com
With your cash deposit and the loan amount you have been approved for this it brings you quit close to the amount you will need for the closing.
You still need to account for taxes, closing costs, title, insurance, & inspections. We recommend sitting down with your real estate agent to determine exactly how close you are to being able to obtain this property.
Remember, the $294,000 number is the "asking price," This is a number that sellers in today's market do not expect to get. By negotiatint the purchase price down you should easily be able to pull this off....but, you need to know what the numbers are to be able to come up with a purchase price that will work for your situation.
The Eckler Team