Purchase price significantly lower than mortgage?

I'm confused as to why your lender isn't telling you this... so something doesn't sound right for sure.. I can tell you that you are not going to buy a condo for $35K that has not yet foreclosed, that's worth $68K... That would be a short sale, and the lender holding the note is not going to lower the price that far below market... not gonna happen.... if the property has already been foreclosed and your buying it from a bank, then if you're buying it for $35K, then it will not compare to the ones selling for $68K.. So there's a lot to your scenario that is making no sense at all... I can see why Bennet is saying the hair on the back of your neck should be standing up.. Something's fishy here!!The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

hi,when he said "Now the real estate agent is saying that I cannot afford the mortgage payment in addition to the condo association fee". Do you have any credit debts, student loans, car loan? When you get a pre-approval, the lender does not look closely at your debt ratios. During the loan process, they look at it closely; therefore, you might not be approval with the loan.

Don't listen to the Real Estate Agent, Tricia, she doesn't know what she's talking about. Your Loan Officer is the person that'll tell you if you're able to qualify, and for how much, and will provide you with a pre-approval letter. All the Realtor needs is that pre-approval letter and she needs to follow it. If she disagrees with it, she needs to discuss it with your Loan Officer.

Tricia, I agree with other comments here. Something sounds odd, but it may just be miscommunication. All you need to pre-approve for is your offer price/accepted price payment, which includes the HOA. Now, if the HOA dues are excessively high, you may want to reconsider the property in the first place. Have a good talk with the loan officer and make sure you understand what he/she is trying to say. If your offer is for $34,900 and that's all you're going to offer, then that's all you need to know you qualify for on this specific property. You will have some trouble with the small loan amount, though; I would suggest talking to a mortgage broker so they can find the lender that best suits your needs at this price range. I might even suggest you look at a higher value property, or even a home. I'm here in Salt Lake and have some familiarity with your market; I'd be surprised if you couldn't find a decent house in your price range. For starters, you'll qualify for about $10-20,000 more with the same monthly payment and you won't have to worry about some of the complexities of the condo financing that can make it more expensive in our current marketplace.

You are not missing anything. All aspects of the lending process should be between you and the lender. The real estate agent should not be involved in the lending process at all. If the lender came to you via a recommendation of the real estate agent I would consider firing them both and get yourself your own lender. There is no reason for the lender to qualify you for more than the proposed contract price. Just because you don't qualify for a $100,000 purchase price doesn't mean you don't qualify for a loan the size you need to complete the transaction. If you are working with one of the big banks or national mortgage factories, that could be part of the problem. You should be communicating with your lender about the amount of the purchase price and what you qualify for, and NEVER let the real estate agent act as the middle man for your loan. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

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