I want to borrow more money then the seller is asking for this house, why would the lender make the check out to them and not me. I am borring the money and the seller is asking for less then I am borrowing.
2007-03-01 10:00:36 · 7 answers · asked by Monica J 1 in Business & Finance ➔ Renting & Real Estate
There is a program called the Nehemiah program where lenders will lend you more that the property is worth usually to cover closing costs, and down payment etc. If there is any money left over the title company will issue a check to you. The sellers would not get paid extra from what is outlined in the contract. The first mortgage broker we talked to tried to get us invovled in that program, but it wasn't for us. We had a down payment, it turns out that the mortgage broker was less than respectable, and we ended up going with a different brokerage company all together. We saved heaps of money by shopping around! DO your research, and don't fall for the bull crap that your credit score will go down because you have too many inquiry's... that is a scare tactic used by brokerage companies to scare you into doing business with them. As long as they are all grouped together in a short period of time they appear as one inquiry...good luck to you!
2007-03-01 13:03:24 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Sounds a bit fraudulent but the lender will pay to your lawyer and then the lawyer will pay to the sellers lawyer which is then passed on to the seller after any outstanding mortgage is removed and settled.
You may have to have a talk to your lender and use the house as collateral to get the money you are after so you don't get ripped off or done for fraud.
Or speak to the seller and ask them to give you the change.
All the best to you
2007-03-01 18:09:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
it's not as simple as buying the house for 100k and it appraises for 115k and your mortgage company just happily gives you 15k. 99% of lenders won't do that. especially in a contracting lender market. manipulating contracts is very fraudulent, but for the example earlier, you could make the sales price 115k (even though the seller only wants 100k out of it) and the seller can cut you a check for the 15k in the parking lot after the closing. (very illegal but unfortunately quite common). downside though is that you are putting a lot of faith in the seller to give you that 15k without any documentation.
2007-03-01 23:17:15 · answer #3 · answered by Brad T 2 · 0⤊ 0⤋
You can borrow as much as the property will appraise for. If the house is for sale for 100K and you get it appraised and it is worth 115, you could borrow the extra 15K if you can get 100% financing. You can let your mortgage company know that is what you are doing to update the home.
2007-03-01 18:58:26 · answer #4 · answered by mvette78 3 · 0⤊ 0⤋
The lender doesn't issue the checks- depending on where you live, the title company or the escrow company does. If there is money left over after all your costs are paid they will issue you a check for the balance.
2007-03-01 18:12:28 · answer #5 · answered by Anonymous · 1⤊ 0⤋
The seller doesn't get the money, you do at closing. Escrow has instructions for payoff and purchase price. Any proceeds after all costs are paid go to the borrower.
2007-03-01 18:09:55 · answer #6 · answered by dancing11freak 2 · 0⤊ 0⤋
A mortgage company will not give you more than the house is worth.
2007-03-01 19:32:12 · answer #7 · answered by SwingLifeAway 1 · 0⤊ 1⤋