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If I approved of $ 200K and bought a house of $ 180k. I can not keep the $ 20K for renovations, etc.? If so, how does it work? Thank you!
Posted by admin Tagged with: apartment, Atlanta, interested, thownhome
No…the most the bank will lend is the cost of the house (appraisal value) less any deposit. You can not borrow more than the house is worth.
No – it doesn’t mean that at all – that’s just the maximum your credit rating will allow you purchase – what if you found a house you wanted to buy and it cost more than your pre-approval amount – do you think the bank will say – oops we meant to give you 400,000 for a house. If you find a house that fits your needs and you want to upgrade – you find a house that is under your maximum pre-approved amount and carry a second to cover renovations. Talk to a Real Estate agent – they can give you a better idea of how to handle this kind of problem.
Not going to happen. It makes NO difference regarding your level of ‘being approved.’ The lender wiill not provide one cent beyond the appraised value of the property. If the house appraises at $ 180K, that is the very MOST you could expect to be funded for.