Home Buying in Margate>Question Details

Capragal, Home Buyer in Coconut Creek, FL

Use my lender or else!

Asked by Capragal, Coconut Creek, FL Fri Jun 15, 2012

I am buying a home and I was told I need the sellers lender to pre approve me and that I can only get concessions if I go to their lender. We offered full purchase price and then asked for 4% concession and new ac since the ac was not working at the time of viewing the home. This home is an investment property. They came back with 2% concession and they will pay for title. The home still needs work. We are going fha

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Capragal’s answer
No this is not bank owned. It was purchased by an investor who flipped the house. I was able to go on a website and see the house prior to it being redone. Actually the investor put in a new flooring, tile and carpet, surfaced the countertops in the kitchen (the upgraded cabinets were already there) and put a backsplash. He also put a new vanity in one of the bathrooms. The master bathroom still has the old stuff in it and needs to be redone and in the other bathroom he put in a double sink and it is almost on top of the toilet so the toilet will need to be moved. The ac is old and needs replacement as well as the pool equipment. The windows are also old and he put new doors on the front of the home but they are not exterior doors and have no weather stripping.They also painted over a border in the living room. Although these are not big things, I believe the investor paid around 112,000 and the purchase price is 189900. I am fortunate to have a husband who is able to take care of most of these minor flaws so it won't cost a fortune. I am still waiting for the lenders approval. It was suppose to get the approval on Friday but I spoke to the other lender who informed me that they are the preferred lender for many companies and that his assistant was out and obvioulsy he was extremely busy. I will give an update on what happens. If things don't go well, then we are back out to our next adventure searching for another home.
1 vote Thank Flag Link Sat Jun 16, 2012
Though you did not say, is this house a foreclosure? Typically, bank owned homes will require they provide a pre approval for all buyers. And they are usually more willing to give concessions if you use 'their lenders,' because they can make up the difference via the loan.

Short of using the seller's lender, everything else is just part of the negotiation process. Good luck.
0 votes Thank Flag Link Sat Jun 16, 2012
They can ask you to get pre-approved to ensure that you are a qualified buyer. It may not hurt, they may get you a better deal than you have from your lender. The law is complex on this issue about concessions and lenders. Your agent or their broker should be able to resolve. You asked for 4% and they came back with 2% and title, which is pretty close. It is part of the negotiating process. If you need further help feel free to ask.

Thanks
Howard Vogin
http://www.voginteam.com
0 votes Thank Flag Link Sat Jun 16, 2012
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