You need to do some homework on the HOA as it is unclear if they allow rentals or if the commercial units are part of the association or if you can get financing in the building. If you do not want to work with an agent contact the other agent directly and ask these things, but remember they work for the seller.
The rental market is not so good in winter so not clear how fast it would rent.... more
Yes you can be approved.
Your lender will verify your reported income (last 2 tax returns + YTD P&L statement), credit scores, assets and amount of down payment.
If the numbers make sense then you can qualify for a loan.
If your self employment income reported on your taxes after expenses have been deducted is not sufficient, then you may have some issues with obtaining financing.
Feel free to contact me should you have any questions.... more
Did your agent pull SOLD comps before you made the offer? An appraiser will only use sold comparable properties since the price on available properties means nothing. A seller can list their home for any price they want. Sold comparables show what a ready, willing, and able buyer paid for a home.
When a home appraisal is lower than the purchase price you only have 4 options:
- seller reduces the price to the appraised value
- buyer makes up the difference by bringing cash to the table (the mortgage company will only lend up to the purchase price or the appraised value, whichever is lower)
- seller reduces the price a little and buyer makes up the difference
-the deal falls apart
You can try to appeal the appraisal (if you have sold comparables to justify it) but many appraisers won't budge on their number. Most mortgage companies will not allow you to order a second appraisal (do you want to spend the money to try). If you do, you can always apply for a mortgage with a different company and cross your fingers that a new appraisal comes in at your purchase price.
If your loan is an FHA mortage, the current appraisal stays in the system, attached to the home, for a few months. You don't even have the option for a new mortgage company/appraisal. How much effort do you want to put into purchasing a home at a higher amount than it appraised for?
If the seller won't give a response, you should put something in writing with a timeline. Unfortunately, you may have to walk away from the home.
Long & Foster Real Estate, Inc
Lehigh Valley Office, PA
What I have here is not legal advice, I am surprised your agent and attorney cannot address this concern. The ball is in your court as a buyer until the mortgage contingency waiver date. YOU as the buyer waive the mortgage contingency, not the seller. So if the mortgage waiver date was last Thursday, Did your attorney ask for an extension when the seller was notified of the below sales price appraisal? if the seller is unresponsive now, I suspect the waiver day is passed and in effect waived the mortgage contingency. What is the seller to do? Offer to match appraisal after the waiver date? No, it is your side's responsibility to keep track of the mortgage expiration time frame and request the price be modified to match the appraisal. My concern if I were you is that the waiver date has passed and you waived your mortgage contingency and now need to bring more money to closing, (since loan amount is based on appraisal) or risk default on the contract and loss of earnest money. You cannot renegotiate the contract if you violated the time frame.... more
Since no link is visible and no address given, you may wish to ask your question again--in the meantime any local agent(s) can help you, contact any realty office(s) and inquire--or to find the owner, check the local public records department, ask a neighbor(s), current tenants if applicable, etc.... more
I would not waste my time. There are so many properties available out there. Bank owned properties can recieve 30 offers within a day of going on the market. Once they accept a bid, they will not look at any other offers. Also, the lender's purchase disclosures are tailored to that specific buyer.
Good Luck in your search.... more
Hi New Buyer, if you are working with a realtor I would certainly review recent closing prices on comp properties to solidify your intitial offer price. Certainly everything is negotiable these days but a seller will also have this same comp data and be looking to settle on a fair price and may not just give the property away unless they are in dire straits. If the seller senses you are a serious buyer making a fair offer they will certainly be more willing to neogitate on other areas like parking. Additionally, there are purchase incentives available for properties in the neighborhoods you are searching which also may help with your overall negotiations. Please feel free to contact me and I can provide specific details. Good luck!... more