Financing And Closing Costs
I have some questions about financing and closing costs. I did a search but couldn't find the answers to my questions. If there is a thread for my questions feel free to point me there otherwise thanks in advance for help.
I am a little confused about financing and I want to make sure I have ot straight. Say there is a property that I want and the seller is asking $50,000. The appraised value is $60,000 and just for giggles we will say he is really motivated and I talk him down to $45000. now when I go to finance the proerty, the bank will do 80%LTV with 20%down. is that 80%of the 45000 purchase price or 80%of the $60000 appraised value? This rolls over into closing cost question. Suppose the seller is ticked that I got such a good deal on the proerty and won't pay closing costs. Would I be able to roll the closing costs into the loan somehow or no? I hope this question makes sense and I appreciate any answers
Thanks
Joe
Teh 80% is the amount you are going to borrow of the SALES price. In this scenario, it would be 80% of the $45,000.
I/m not sure about the closing cost questions. I would up the sales price by the amount of closing costs, and ask the seller to include closing costs, then. I know that will work, and the seller shouldn't have a problem with that. So irf closing costs were expected to be $1000, change sales price to $46K with seller paying closing costs.
Hope that helps!
it'll depends on the lender's policy as well.
on a deal I was told 90% max 90% max loan.
When we were down to the wire, and credit and everything else was fine, I asked about burying the closing costs in the loan.
For 1/2 pt, they would go to 95%, which was more than enough to cover the closing costs.
If you're in a bind, maybe look at an 80/10/10 or 80/15/5. Sounds like you're getting a good deal on the unit.