Home Buying in Detroit>Question Details

Saini Mitche…, Other/Just Looking in Livonia, MI

We got pre-approved for an $80,000 loan; but we found a couple of houses that we really like for under

Asked by Saini Mitchell, Livonia, MI Thu Jul 23, 2009

$70,000. If
we purchase a house that is $64,000, would we still get the full amount of $80,000
that we qualified for or not?

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Answers

6
Saini-

Your agent must have not explained this to you. If you are pre-approved you do not get the difference when you purchase your home. If this is a reconstructive loan (203K) you can use the difference which would be built into your mortgage to make the home habiltal. If you are in need of an agent I would love to help you get RESULTS!
Web Reference: http://livingstonsells.com
0 votes Thank Flag Link Fri Jul 24, 2009
Hi, Saini.

It sounds like you are not yet aligned with a Buyer's Agent, which you certainly are in need of now.

Please visit the link below to learn more, and feel free to contact me as I would like to discuss this with you further.

Thank you.


Derek Bauer
Real Estate One
0 votes Thank Flag Link Thu Jul 23, 2009
You are PRE APPROVED, that is the optimal wording here. This gives you clearence to use 80,000 plus your deposit amount, if you find something for 50,000.00 you dont get the extra 30,000.00 unless its a 203k loan for homes that need to be rehabed!
0 votes Thank Flag Link Thu Jul 23, 2009
Saini.

The loan you were approved for is one that is based on the purchase of a home that will appraise for at least the loan amount. Based on your present loan pre-approval you wuld not be eligible for additional funds unless your loan was modified to include repairs.

Our recommendation is for you to speak with your mortgage consultant for this information.

Good luck
The Eckler Team
0 votes Thank Flag Link Thu Jul 23, 2009
good afternoon......no, the loan size will be based upon the ltv granted in your mortgage approval.....if you are buying fha for instance...and the home price is $70,000, then the loan would be 96.5% of the sales price plus the upfront mip of 1.75%......if you are going for an fha 203 loan, then the amount of the purchase price and the repairs would then be the loan amount....best regards.....bob mcclure- success mortgage partners- plymouth, michigan...
0 votes Thank Flag Link Thu Jul 23, 2009
If your purchase price is $70,000 and the house appraises for that, you could do a renovation loan which will finance up to 110% of the after repair value if you wanted to finance some work into it.
0 votes Thank Flag Link Thu Jul 23, 2009
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