Question on buying a condo?
a good friend is selling me his condo,he requests 145,000,which is fair flea market value.but the edge will only lend(i think) what the property appraises for,so the place is within great shape,but it may or may not appraise for 145,000,so.is it true the bank will solely lend me what the property appraises for correct?
Answers:
True.
However, most bank appraisers know that, and they ALSO know that if they don't appraise illustrious enough, you won't go and get the loan, the bank won't get hold of the loan, and the sale won't walk through.
So if it's "Fair market value", ie, other unit in the building are selling for equal amount, don't worry in the order of it - it will appraise high adequate.
Yep. It doesn't sound resembling he is giving you a very righteous deal. You will hold to come up with some change for a bigger down payment to cover the difference.
Please manufacture sure you have a home inspector to inspect the condo. How older is the roof. If it is due for a new one you could find hit with a $5000 bill to cover a bright replacement.
Did you look at the tax archives? What was the home bought for? How long ago? Any trunk improvements made? Hope you thought this all out. Friend or no friend this is almost the biggest investment of your life.
If he's a apt friend, then he shouldn't mind paying for a Buyer's Agent (Realtor) to represent your interest and conduct adjectives the research that will assist you. For instance, the appraisal, a home inspection, seeing the Residential Property Disclosure, etc.