FundRobot » Fund Price » Can we negotiate terms and pricing before my loan is approved?

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Default can we negotiate terms and pricing before my loan is approved

I am 23. I am trying to buy a house that is listed at 47,000 In north west Missouri. I'm using my tax return to make the down payment, but don't have anything for the closing costs yet. The bank wants proof that I can pay closing cost before going ahead with the loan. It will take me a month or two to come up with the closing costs, but i really don't want to lose this house. Would it be out of the question, so long as i let the realtor know I'm waiting on the loan, to make an offer on the price, plus name the terms that I want the seller to pay closing costs and inspection? I don't necessarily need the seller to pay but if I had papers saying he was I think it would speed the process up just a little bit.

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Default can we negotiate terms and pricing before my loan is approved

Make your offer contingent upon getting financing. The seller will either accept or reject your offer and you will know where you stand. You will probably need to place $1,000 in an escrow account when your offer gets accepted, so you will need at least this much in cash up front (this you forfeit if you walk away). Until you get the earnest money, then there is no use making the offer.
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Default can we negotiate terms and pricing before my loan is approved

I think I paid that much for my last car...Missouri, here I come!
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The bank won't approve you until you have a signed contract anyway.

Seller doesn't pay inspection, you do, as the inspection is for YORU benefit only. Ask your agent if asking for seller to pay closing costs is common in your area at this time. Realize that money they pay to closing is money out of their pocket, and they aren't going to agree to it just so you don't have to pay it.
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Default can we negotiate terms and pricing before my loan is approved

Email me michaeldavidson385@hotmail.com. I'd love to talk to you about real estate I'm 22 and I'm investing in my first house very soon!
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Default can we negotiate terms and pricing before my loan is approved

What you want to do is very precarious.

#1.Do you currently have your tax return in your hand?

#2. what is your source of your closing cost? (normally, the down payment, closing cost and other funds necessary to close a real estate transaction must be seasoned for a minimum of 90 days) The funds must be in your control in some financial instrument at least 3 months. You would need to produce some type financial instrument indicating you had possession of these funds 90 days or more.

If you are not able to produce this proof, most likely your mortgage loan application would not be approved.

You may make an offer on the property requesting the seller to pay closing cost. In most instances the seller would be willing to pay a certain percentage of the closing cost. In most instances the seller would pay non recurring closing cost such,as escrow and title fees.

You would normally be required to pay recurring closing cost, such as county taxes and insurance prior to the closing of the sale transaction.

Normally you would be required to pay and have the funds available to pay for an appraisal as well as the inspection if you desire an inspection. You would be required to pay these two prior to them even starting their task. The seller would not normally pay for these two services. The cost of these two services are the responsibility of the buyer.

You could make an offer on the property with the outlying the fact that you would be purchasing the property subject to you being approved for a mortgage loan. You may also request the seller to pay all closing cost.

In making your offer you would be required to have earnest money to accompany your offer. If for some reason you are not able to close the transaction, in all probability you would lose these funds for failure to perform.

You have to realize that the seller is attempting to get the maximum amount of money in his/her pocket from selling their property and might not be receptive to giving money to the buyer by paying all the closing cost.

If it would take you a couple of months to have a sufficient amount to pay closing cost, I am almost sure the seller would want to close on his sale and not wait for 2-3 months for you to have a sufficient amount to close the sale transaction..

What the buyer do and what your mortgage lender want and require to approve your mortgage loan are two different things in the sale process. Without of your ability to pay the closing cost, your mortgage loan underwriter is not gonna do anything else with your mortgage loan application.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"
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Old   #7 (permalink)
 
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Default can we negotiate terms and pricing before my loan is approved

Find yourself a SHORT TERM TENANT. Make their DEPOSIT the closing costs.

Get hold of the seller and explain your bank will only let you buy it with closing costs - the seller wants to sell they will usually help you.

(Your tenant is your REPAIR / REHAB bank :D )

CKwunch school of property: Property fluctuates in value, but tends over long periods to go only 1 way - UP. If your broke to begin with buying a property - GET A TENANT - you need to put most of it aside for repair / emergency and times just to meet the mortgage. YOU CAN lose and lose big in property, if you make the mistakes others have made, if you are smart, get a tenant NOW, tell the seller, tell the bank that is how you intend to cover closing - the funds will be given to you. DO NOT TELL THE BANK ITS A SALE TO LET, tell them you are taking a tenant to cover initial expected costs. Banks are funny old things, they realise a tenant will give them money when u cant - its a safer risk.
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