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bonch20
LIF Adult
Member since 9/09 1290 total posts
Name:
Bonnie
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mortgage question
we are about to go to contract, just need to sign an amendment from my lawyer...
question is it reads "if the appraisal is XX or greater, an insuffienct appraisal shall not give the purchasers the right to cancel for not obtaining a mortgage commitment.
shouldn't it be XX or lower? i thought we want the appraisal to be greater so we can obtain the mortgage?
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Posted 9/24/09 1:11 PM  |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: mortgage question
What is the beginning of the sentence before 'if'?
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| Posted 9/24/09 1:35 PM |
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bonch20
LIF Adult
Member since 9/09 1290 total posts
Name:
Bonnie
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Re: mortgage question
nothing, that's how it starts
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| Posted 9/24/09 1:40 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: mortgage question
Im just learning all this mysel, but that doesnt seem right to me either... I would just ask your lawyer... youll prob get a better explanation out of them than you will with us 
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| Posted 9/24/09 2:09 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: mortgage question
Posted by bonch20
we are about to go to contract, just need to sign an amendment from my lawyer...
question is it reads "if the appraisal is XX or greater, an insuffienct appraisal shall not give the purchasers the right to cancel for not obtaining a mortgage commitment.
shouldn't it be XX or lower? i thought we want the appraisal to be greater so we can obtain the mortgage?
yeah, that makes sense to me.
let's say you agreed to pay 400K.
the appraisal should be for 400K BUT in some cases (like ours) we rolled the closing costs in, and so we needed an appraisal of 400K + 3% - which is 412K.
if the appraisal comes back at 405K, that's less than the extra 3% needed.
so it would be YOUR job to come up with the necessary closing costs (the extra 7K). you can't back out of the deal because you weren't able to roll in all of your closing costs, because you can't ask for a mortgage greater than the appraisal (at least that's what i was led to believe).
make sense?
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| Posted 9/24/09 2:36 PM |
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bonch20
LIF Adult
Member since 9/09 1290 total posts
Name:
Bonnie
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Re: mortgage question
yes, that helps! thank you so much!
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| Posted 9/24/09 3:25 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: mortgage question
Posted by headoverheels
Posted by bonch20
we are about to go to contract, just need to sign an amendment from my lawyer...
question is it reads "if the appraisal is XX or greater, an insuffienct appraisal shall not give the purchasers the right to cancel for not obtaining a mortgage commitment.
shouldn't it be XX or lower? i thought we want the appraisal to be greater so we can obtain the mortgage?
yeah, that makes sense to me.
let's say you agreed to pay 400K.
the appraisal should be for 400K BUT in some cases (like ours) we rolled the closing costs in, and so we needed an appraisal of 400K + 3% - which is 412K.
if the appraisal comes back at 405K, that's less than the extra 3% needed.
so it would be YOUR job to come up with the necessary closing costs (the extra 7K). you can't back out of the deal because you weren't able to roll in all of your closing costs, because you can't ask for a mortgage greater than the appraisal (at least that's what i was led to believe).
make sense?
wow thats really interesting!! I didn't know that, but it makes total sense.
So what if you are counting on this? We want to roll our closing costs in when we finally find a place to buy. Can you have it appraised prior to contract? or what happens, you lose your downpayment?? that's scary!!
Message edited 9/24/2009 5:01:24 PM.
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| Posted 9/24/09 5:01 PM |
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bonch20
LIF Adult
Member since 9/09 1290 total posts
Name:
Bonnie
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Re: mortgage question
we had to sign the contract prior to appraisal...pretty sure that's standard. it is scary, if the house doesn't appraise for the offer + closing costs you have to pay the difference. if we back out now, we'll loose our down payment.
ahhhh, the stress of homeownership!
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| Posted 9/24/09 5:20 PM |
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NRuby515
LIF Infant
Member since 9/09 210 total posts
Name:
Nicole - NikkiR515 on LIW
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Re: mortgage question
Wow.. I had no idea they could do that!!! I just got my appraisal back a few weeks ago and thank goodness it was high enough! That really would have left us high and dry!
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| Posted 9/24/09 7:07 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: mortgage question
Posted by bonch20
we had to sign the contract prior to appraisal...pretty sure that's standard. it is scary, if the house doesn't appraise for the offer + closing costs you have to pay the difference. if we back out now, we'll loose our down payment.
ahhhh, the stress of homeownership!
yup, that's exactly right. it's the chance you take. luckily most homes appraise for more than you need so you should be fine  our appraisal exceeded our needs by $8K!!
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| Posted 9/24/09 8:16 PM |
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