Do you think it’is easier to get a mortgage loan when the property value has gone up? (new home)?
Taztaz * asked:
Purchase price $119,600….. same sq.ft. houses on sale in the same community $135,000-$145,000
Ok, maybe i didnt explain myself properly… This house is barely being built, my loan office is barely preparing our loan prob to close by d end of the month, so since the value of the houses have gone up in that community (and the house has nice upgrades) and im borrowing probably below market value… if that would make it easier to get d loan…
Oh, and the score is above 650, its a no-doc loan and im putting 5% down
This entry was posted
on Monday, December 29th, 2008 at 6:49 am and is filed under Home Loans.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
Purchase price $119,600….. same sq.ft. houses on sale in the same community $135,000-$145,000
Ok, maybe i didnt explain myself properly… This house is barely being built, my loan office is barely preparing our loan prob to close by d end of the month, so since the value of the houses have gone up in that community (and the house has nice upgrades) and im borrowing probably below market value… if that would make it easier to get d loan…
Oh, and the score is above 650, its a no-doc loan and im putting 5% down
December 29th, 2008 at 3:31 pm
Yes,because you have built equity on the property.
January 1st, 2009 at 11:39 pm
NOT in todays market
What is your credit score
Less than 600 theres a problem
What have houses really sold for in the past two months?
January 2nd, 2009 at 8:22 am
No, because if value has gone up, so does the price.
the less money you borrow, the better your chances of getting a loan
January 4th, 2009 at 5:51 pm
Banks don’t change thier approval process very much. If you’re credit is pretty bad then the mortgage crisis won’t change it very much. If you have a mediocre credit rating, then you may have a little bit easier time because prices have gone down.
January 6th, 2009 at 8:06 am
No that makes it harder. depending on the area.
remember what goes up must come down. than you’ll be stuck with a higher note. when the value goes down you won’t get the price you paid for it
January 8th, 2009 at 8:30 pm
yes. the loan is based on the equity in the house. so if you bought it for $119,600 and, for example, you didn’t put much down, you wouldn’t be able to get a loan. But as the market value increases, now you will have equity. So the median of what houses are going for in your area, less what you actuall owe on the house is what you’d be able to get a loan for.
Also, if you did buy the house and have to pay PMI
insurance, you can call your mortgage company and have it removed (which would save you cash) since the house now has over 20% equity.
Also know, that if you are attempting to get a loan and it has been less than 12 months since you bought the home, you can only go for equity on the purchase price and market value is irrelavent.
January 11th, 2009 at 10:10 pm
Don’t look at what is currently for sale, look for what has currently SOLD! I can ask 500,000 for a house and my neighbor could ask 575,000 – but if they’re only worth 125,000 – that’s all we’re likely to get.
Also, try to find out what makes them better homes. Do they have better amenities like granite counters in the kitchen, hot tub in the bathrooms, etc.
January 13th, 2009 at 10:12 am
The only thing that matters in this case is the appraised value being at least the purchase price. I had a similar case when I bought my house this summer. It appraised at 500k and I bought it at 415k but my loan and programs were based on the 415k. I.E. i put 5% down of the 415k not the 500k. Many of my clients who buy a house have their appraised value higher than the purchase price. It doesn’t help them but it certainly doesn’t hurt them