My husband and I are buying our first home. We were approved for much more than the house we’re looking at costs, but we didn’t know if we would be able to accept a little more, like a couple thousand, to make some minor repairs and update the fixtures.
Asked by:Becky Conrad
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You can be approved for a $1,000,000,000,000 home.
The home you choose will get an appraisal.
That will be the value your loan will be based on.
Not a red cent more.
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LOL! The amount you will be loaned is NOT the same as your approval. The maximum loan that you can get is the price of the home MINUS the down payment. There are loans for making repairs but if you are only looking for $2K for cosmetics, save up the money and pay cash.
Sure you could accept more, but no lender will give it to you. In this financial market, the most you can hope for in financing is about 96% of the purchase price of the house. The days of getting a loan for more than you pay for the house are history, at least for now.
No in this case, you can only get a loan for the amount of the purchase. They don’t give you any extra. If there is equity, you might get a second loan, a line of credit loan, but it would depend on whether the appraisal is higher than your purchase amount. Bottom line is no, it doesn’t work that way.
You will not be able to “accept a little more.” That’s NOT how home loans work. Preapproval amount and final loan approval are not the same thing.