The current tennants in the other unit pay $425 per month. The going rate for an apartment of this type is $625-$700 per month in this area. They are currently month-to-month.
I have excellent credit and I would like to keep the rate low if possible. I am approved for $164,900 and $1,410.31 per month with PMI and property insurance. The asking price for the place that I am looking at is $179,000. Property taxes and PMI/property insurance would be approxamately $1,565.
I am very likely to get a much higher paying job in the next 6 months as well. A co signer is an option...anyone have any creative ideas?I've been pre approved for a home loan, how do I buy house that costs more than what the pre approval is for?
Get a new mortgage broker that knows about creative financing and take into account the low rents. If you raise those rents you should be able to afford that place. why not an interest only loan until you are making more money , and can afford a fixed 30 yr.
You do realize that most people move about every 3 to 5 years. and a fixed 30 year is only paying the interest for the first ten years. why kill yourself. get a different mortgage broker. And why are you paying PMI?? there are ways around that.And FYI, don't contact anyone on this website for your loan. go to your local yellow pages, or ask a realtor in your area for a refferal.I've been pre approved for a home loan, how do I buy house that costs more than what the pre approval is for?
Put the difference as down payment. Don't get over your head. They usually preapprove you for what they think you can afford. If you go more, you run the risk of being streched further than your means.
Number one rule for me is put at least 20% down, Then you'll have fewer problems.
If you can't do 20%, wait untill you can... it's that simple.
get a loan for the difference from another bank.
That isn't a good idea. You should always get less than what you are pre-approved for. If they felt you could afford more, they would have approved you for more. There are plenty of nice houses for less. Just keep looking in that area.
There are million ways you can get this financed. The easiest way is talk yo a mortgage broker and not a bank. Your Realtor will know one. The thing that scares me about your scenario is that you want to raise the rent, which will require you find renters, because the current renters will say later. And they may or may not leave the ';easy'; way. So then you may have to fix up the place. If you don't have cash that you can get ahold of or lines of credit, you could by biting off way more than you can chew. Good luck which ever way you decide to go.
It's not all that creative, but don't bite off more than you can chew, man. You've been pre-approved for what the lender believes you can afford, and that's based on a whole lot of experience.
Your rental and roommate plans, or the actual cost of renting and upkeep/maintenance, could change or not work out. Could you absorb a month between tenants while you paint, clean carpets, or replace the counter with the burn spot? Can you cover your payments if the place didn't rent for a whole summer? Could you afford a thousand-dollar plumbing bill? These are the things landlords face, not often, but sometimes.
The only safe way to buy a property that costs more than the loan you're approved for is to save up and put more as your down-payment.
Be careful not to extend yourself too far. Alot of mortgages are being foreclosed now because people tried to stretch their budgets too far.
A cosigner is one idea if you can get someone to do that for you.
Is there any chance you can offer less money for the place, like $165,000?
Maybe you should (1) look for a place that is less expensive or (2) wait until you get that higher paying job.
You have to be able to prove up front that you can afford the house. If the bank is willing to put up so much then you have to put up the rest on the spot (unless you're a 1st time homebuyer).
Call 1 800 express and talk to Rodney....he will hook you up.
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