Buying or Selling a Home/financing

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Expert: - 10/28/2006


Question
im in a process of buying a property here in NJ, and me and my fiance would like to know if there's a lender that have a program for 100% financing which includes all the closing cost(one loan only). i have a good faith estimate with one lender and he said that it's not possible to get a 100% loan with closing cost included, is this true? he said i have to bring money out for the closing.

the loan amount we're trying to get is $298,000.00(amount of property that me and seller agreed) with $19,031.11 closing cost.

and the other estimate is $307,000.00 which he added $9,000(which he said it will come back to us at closing) with $10,304 closing cost.

need advice.

Answer
Dear Edgardo;
The loan you are looking for is out there if (and ONLY if)
the home appraises for higher than the contract amount.  so if the home price that you are paying is $298,000 the appraisal needs to be $307,000 or $308,000 depending upon the actual amount of closing costs.

You should probably talk to a few lenders to get the best program to suit your needs.  Your credit will have to be excellent and you will probably need to show some other payment history to get this kind of a loan.  Not all lenders offer this since you are 'upside down' in the loan.  In other words...if you default on payment, the bank is stuck with an amount of money that they cannot recover since the home is worth less than your loan amount.  When there is a forced sale on the foreclosure of a home, the bank doesn't like losing money.

~Jessica Bryan

Buying or Selling a Home

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Jessica Bryan

Expertise

buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.

Experience

Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.

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