1st Class Ventures

“TIP OF THE DAY”
Let me Explain:
If the bank approves you for a home loan of $400k but the home is appraised at $380k that is the amount the bank will finance less your down pymt!

YOU DO NOT! & I repeat DO NOT GET THAT EXTRA $20k or however much it is to do home improvements, give the home a facelift, a nice kitchen etc. or extra money in your pocket.

Granted there are a few hard money loans that are out there that has certain specifics that can allow such things like improvements to the property, but rule of thumb just stick to the basics & understand that the bank will loan you what the home is appraised for not a penny more! ESPECIALLY FHA LOANS!

I’ll continue to post helpful tips to help throughout the home 🏡 buying/selling process.

TIP OF THE DAY:
Let me explain, if you are approved for a $500k loan on a house 🏡 but know you want your mortgage to be around $1700-$1800/Monthly DON’T go looking at houses at the higher end of that approval, because any house that is $400k & up your mortgage will most definitely be over $2000/Month!

Not because you are approved for that amount means that’s what you have to purchase! Now it’s great that you are approved for that because it gives you more leg room to work with, but if you have other obligations & a $2500-$2800 mortgage monthly is a stretch look at houses within your budget & let your realtor know, you see most realtors won’t advise you on this, because the more the house the more the commission! But as I’ve stated before all realtors aren’t created equal!