ok, this is OT but say you could buy a house for 15k under what it would appraise for, not nesc worth spending 5k on refi. So could tell the bank you want a loan for whatever the house appraises for and then have the seller pay you back the 'change'. Has anyone done this? What guarentees you your 'change'?
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ok, this is OT but say you could buy a house for 15k under what it would appraise for, not nesc worth spending 5k on refi. So could tell the bank you want a loan for whatever the house appraises for and then have the seller pay you back the 'change'. Has anyone done this? What guarentees you your 'change'?
Are you describing the following?
You get purchase contract for say 85K.
You get a loan for the appraisal value, say 100K.
That leaves 15K minus expenses on the table. That money belongs to you. The loan was made to you. It was funded at closing by the escrow company writing a check to the seller, real estate agent, tax office, etc. Only with some non-standard contract terms would that money go anywhere else.
(The above is my understanding of the process, and may not be exactly correct. See your escrow agent, realtor, attorney, etc.)
Depends on the lender
expect at least 3-5k
Would they be close to the costs of getting the mortgage in the first place?
ok, this is OT but say you could buy a house for 15k under what it would appraise for, not nesc worth spending 5k on refi. So could tell the bank you want a loan for whatever the house appraises for and then have the seller pay you back the 'change'. Has anyone done this? What guarentees you your 'change'?
thanks
Nick
Quote:
ok, this is OT but say you could buy a house for 15k under what it would appraise for, not nesc worth spending 5k on refi. So could tell the bank you want a loan for whatever the house appraises for and then have the seller pay you back the 'change'. Has anyone done this? What guarentees you your 'change'?
Are you describing the following?
You get purchase contract for say 85K.
You get a loan for the appraisal value, say 100K.
That leaves 15K minus expenses on the table. That money belongs to you. The loan was made to you. It was funded at closing by the escrow company writing a check to the seller, real estate agent, tax office, etc. Only with some non-standard contract terms would that money go anywhere else.
(The above is my understanding of the process, and may not be exactly correct. See your escrow agent, realtor, attorney, etc.)