cash out at closing

Sounds like you're under the gun. Give us a little more info so we can help you out.

What strategy are you using?

What is your end goal in doing this deal?

What do you ultimately want to do with the property?

What did you write on the contract after your name?

Do you have escape clauses in the contract, if so what are they?

What does your Agent think you are trying to accomplish?

What are you trying to accomplish?

The bank will give you a loan based on the purchase price or the appraisal price, whichever is lowest.

... & of course the bank is determining your credit worthiness to begin with. Gone are the days when you can buy a house for 100K & get an appraisal for 150K & get a check of 50K from the tile company at closing.

I got two offers accepted, one property for 104,500 and the other for 109,000, I want to buy them both and live in one, rent the other or owner finance it, the one for 109,000 its probably worth about 150,000 maybe more, I want to buy this one first to take cash out, I have a pre qualification from a mortgage co. I am assuming that I write the contract for 150,000 to present it to the lender, i told my agent we needed to redo the contract, the lender havent seen it yet, my agent sent a contract for the asking price as an offer, I am not sure if she needed to do that, but she did, what I am asking is can that be done? my lender said he would include the closing costs on the loan that way I would have only the down payment to present at the table, That's why i am assuming I can do the contrct for more to receive cash at closing, if that is the case how does that work? is there a form where you assaign the monies? or how is it done? can you please help.... thanks

yes I understand that part, the purchase price is 109,000 plus closing costs, I have a lender that pre qualified me, The property would probably appraise for 150k, my question is how do I take cash out at closing? is it possible? can I make the contract for more to take cash out?

and calmly answer MattNJ list of questions. I know your excited, but you have to decide your strategy. If you want to keep one for your personal residence and you are pre-qualified that is great. But remember, the property also has to qualify thru the banks appraisal. Good luck Mike and Congrats!!!

It sounds like you want to live in one property and have the other one rented out for steady income... great, but here's the problem before you can cash-out on any property now days the banks need to see that you can make the monthly payments on a 109,000 loan not 150,000 loan so first things first get the loan for 109,000 within 6months to a year you could either pull the equity or refiance the property and pull the cash out, but again this is based upon the appraisal done on the property.I say that because some banks are what we call seasonal, and seasonal means that you have to hold the property for awhile before you start pulling cash-out on them thats why bank you want to wait 6months to a year after the deal. Hope this helps you and good luck.

For properties in rural areas, you can get the loan for the purchase amount and for an amount you would need to rehab the property, it's either a usda loan or an fha loan, and it goes by what county and area you live in, but if the properties are in qualified rural areas this will work. It's for homeowners or investors.

Some PML or HML lenders will allow for it as well, but most conventional lenders only lend a percentage of purchase price.

that takes two separate loans unless laws have changed

Nowadays its near impossible if not impossible to walk away with more than the purchase price and banks now want homes seasoned before they even think about you doing a refi or cash out

Best bet would be to buy one, give it up to a year, then buy the other

Or,......hypothetically of course

You could attempt to buy both houses at the same time with different banks and each be your first home

I think i've heard of this being done....can't and won't confirm by the way

thanks crystal

ok thanks

thanks steve

thanks everyone for the info