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Question about Approval amount vs max offer amount, etc

Posted on: 23rd Mar, 2009 08:18 am
OK, my fiance and I have found the house we want, we have been told that they will accept an offer of $230k. We have a current pre-qual approval for $225k @ 4.75% FHA loan with a seller contribution of $8700 towards closing costs.

Being somewhat of a numbers guy, to me that would mean that we could make an offer of $230k with seller paying 3% towards closing costs ($6900). Here is my logic, please tell me if I am completely wrong!

Sales price: $230,000
Downpayment: 3.5% = $8,050
Total financed: $230,000 - $8,050 = $221,950
Closing Costs: total-seller contribution = $8,700-6,900 = $1,800

By my math we could make that offer on the house based on our pre-qual sheet, is that correct?!?!

Also, could we take the $1800 in closing costs that the seller isnt paying onto the loan, making our total loan amount $223,750. Or just make our offer for $1800 more and ask for the whole $8700 back for closing?!?!
click on "my profile" and you'll see a box that will allow you to go to private messages where you ought to be able to see it.
Posted on: 24th Mar, 2009 08:34 am
I found it, quick messages are a little different. I will be replying. Thanks!
Posted on: 24th Mar, 2009 08:35 am
email sent =)
Posted on: 24th Mar, 2009 08:47 am
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