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.
Licensed Real Estate Associate Broker
681 Lexington Avenue
New York, NY 10022
Phone 212-688-8530 x223 Cell 917-991-2528 Fax 212-758-7495