I'm a first time home buyer and the house is selling for 100K , can i borrow from the lender 110K so that i have money for appliances and carpets and such? How do i go about getting the additional money?
2006-10-01 04:05:45 · 9 answers · asked by BigRey 2 in Business & Finance ➔ Renting & Real Estate
Yes...but only if you are a complete idiot.
You will be far better off working a second job for two months and buying used appliances for starters. Work your way into really nice replacement oven, washer/dryer, fridge etc. later. They will be paid for, you will OWN them and your home much sooner.
Check this out: www.daveramsey.com
2006-10-01 04:16:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are lenders who will loan more than the purchase price, but you will pay a MUCH higher interest rate for that! And you'll be paying for carpets and appliances that will long be gone before the mortgage is paid off -- that's very BAD financial management.
A much better way would be to make an offer contingent upon the seller installing new carpets and appliances first. You CAN offer more than the asking price, but should probably start at the asking price first. If the seller is desperate for a sale, they may well accept the offer.
If that doesn't work, get a separate loan AFTER you close on the house.
2006-10-01 11:48:51 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Let suppose the price is indeed $100,000 and the additional improvement amounts to $10,000. Increase the purchase price to $110,000 and make it as a condition that the seller do the improvements or he can credit you the $10,000 at closing. Some bank may escrow that amount and pay it out as you finish your improvements. Your Realtor should know what to do.
The second thing is for the appraisal to come up to at least $110,000 with the new improvements. The banks are not there to take on unreasonable risks. They also have to follow FDIC lending guidelines. Currently, default rates are climbing.they are tightening their lending practices.
2006-10-01 12:39:18 · answer #3 · answered by robert S 4 · 0⤊ 0⤋
Their are loan programs available that would let you borrow based on a price above the contract price. Essentially you would have to get estimates for all the improvements to the property, that would be added to the purchase price and then they work the loan from there.
One company that offers this is HomeBanc, but they are only in the southeast. Here's a contact if you need more info:
http://www.homebanc.com/jjayne
Regards,
Joe Ballarino
http://www.AmerivestRealtyofnaples.com
2006-10-01 11:29:31 · answer #4 · answered by Joe_Ballarino 3 · 0⤊ 0⤋
Only if the house has value above what you are paying. Just remember, that will raise your term. Don't get into the same trap as these yo-yos who are getting forclosed now by getting a home equity this and that. You will doom your finances! Buy now-pay later (credit cards) does not work well if you don't control yourself!
2006-10-01 13:37:52 · answer #5 · answered by Delta Charlie 4 · 0⤊ 0⤋
i really think that it depends on the band or the lending institution that you use, however im sure that when you went in you would be able to explain that the house is in need of repair and applieneces and you could borrow more, obviouslly pending your credit and the bank, good luck
2006-10-01 11:15:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
my parents jsut went throught this..and the place they went were assholes...but there credit credit is bad..so they wouldnt let them..hope you get the money though!
2006-10-01 11:09:03 · answer #7 · answered by miss!@ the disco 2 · 0⤊ 0⤋
the safest and the best way to go is what Bostonian recommend to you. i agree with him.
2006-10-01 22:06:59 · answer #8 · answered by bianca 4 · 0⤊ 0⤋
You may do this I think
2006-10-01 11:13:54 · answer #9 · answered by hristos_88 2 · 0⤊ 0⤋