Posted on: 13th Jan, 2014 12:47 am
Should I return the extra funds to the lender if I purchase a home for less than the received loan amount? How do I deal with this situation?
Hi Guest,
It is surprising that you have received extra funds from the lender in the first place. Purchase price minus down payment will be equal to the loan amount.
Thanks,
Jerry
It is surprising that you have received extra funds from the lender in the first place. Purchase price minus down payment will be equal to the loan amount.
Thanks,
Jerry
Hi Guest!
Welcome to the forums!
You should immediately get in touch with your lender and try to sort out the matter.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
You should immediately get in touch with your lender and try to sort out the matter.
Feel free to ask if you've further queries.
Sussane
How is it possible to buy a home for less than the mortgage amount received and the lender did not know about it?
There is a Purchase Contact submitted to the lender.
There is an appraisal submitted to the lender.
The lender lends a mortgage amount based on the lesser of the purchase price or the sales price.
While a mortgage up to 100% of the purchaes price is theoretically possible and legal, no one does that anymore.
No one but no one lends over the purchase price.
How can you get a mortgage from any lender that is higher than the purchase price in the purchase contract?
There is a closing agent, maybe an attorney, who has reviewed the purchase contract and closes the loan.
Anyone can make an error and send too much money to closing.
Unless something fraudulent was done by someone along the line, please explain how this happened?
There is a Purchase Contact submitted to the lender.
There is an appraisal submitted to the lender.
The lender lends a mortgage amount based on the lesser of the purchase price or the sales price.
While a mortgage up to 100% of the purchaes price is theoretically possible and legal, no one does that anymore.
No one but no one lends over the purchase price.
How can you get a mortgage from any lender that is higher than the purchase price in the purchase contract?
There is a closing agent, maybe an attorney, who has reviewed the purchase contract and closes the loan.
Anyone can make an error and send too much money to closing.
Unless something fraudulent was done by someone along the line, please explain how this happened?
