First time buying a home, can someone clarify a few things?

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LuckyTaxi

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Dec 24, 2000
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We're looking to make an offer on a house soon. Here are a few questions for those who have gone through the process.

1 - So we got married last year (religious ceremony), but we never went to go get our marriage license. We'll be doing that this week. If the loan is under my wife's name, are they going to ask for a copy of our marriage license if we want to put both our names on the deed? I ask because she kept her maiden name.

2 - When does the appraisal happen? I ask because we're looking for a long settlement, our lease renewal occurs in July so I'll need to inform our landlord our intentions. We found a house we really like and the seller is willing to work on a long settlement date. With that said, I would hate to wait until the last minute and find out the house appraised for much less.

If we put enough money down, would a low appraisal cause the loan to be denied? For example, the house is listed for $262,000. We're going to lowball and offer $240k. Without knowing how much the house will appraise for, let's say it comes back at $250 but we agreed on $255k. If we put down 20%, the loan amount would be $204,000.
 

Blieb

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Apr 17, 2000
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1 - I believe they just ask for your license, ssn, that type of thing. If they need some type of proof that would probably come out in underwriting. However, if you didn't get a "marriage license" ... technically, wherever you live ... you are not married in the eyes of that jurisdiction. Although people get married in other countries, states, etc, all the time ...

2 - The appraisal can happen early. You pre-qualify with the lender for a loan. Find a house within that range ... make an offer ... then the appraisal, inspection, etc. If your market is going UP, you want the appraisal done NOW (and firm up a purchase contract). If your market is going DOWN, getting the appraisal later could help lower the price.

3 - Low appraisal will only affect the loan if it messes up the loan-to-value ratios. If you agree to purchase it for 300k, and it appraises for 200k ... to avoid PMI ... the amount your loan needs to be is 160k. So that means if you put 140k down, they won't care.

What they won't do, is give you a penny over 200k (if the price is 300 and value is 200).
 
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LuckyTaxi

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Dec 24, 2000
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I was doing a little more research, as long as the loan amount doesn't exceed 80% of the appraisal value I should be good correct? At first, i thought we would be screwed regardless but I forgot about our downpayment (20% no matter which house we buy).
 
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velillen

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Jul 12, 2006
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I was doing a little more research, as long as the loan amount doesn't exceed 80% of the appraisal value I should be good correct? At first, i thought we would be screwed regardless but I forgot about our downpayment (20% no matter which house we buy).

Im not sure how it all works exactly, but i got a USDA loan and my house appraised for 220k. I bought it for 219500. My loan was for the full 219500 so the 80% of the appraisal didn't apply for my type of loan. But that is a 0% down loan too. Just be aware there can be other "fee's" (i had 7k upfront of "PMI" basically to pay...or i could have rolled it into the loan)

As for the appraisal...soon as you start drafting the papers just tell them you want the appraisal done first and asap and they should have it done quickly for you. Mine went inspection first then appraisal but it shouldnt matter if they were switched i wouldnt think. No reason you couldnt just do both the inspection and that right away though. But i would talk to your mortgage company as they can get all those details hammered out for you.
 

EagleKeeper

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Oct 30, 2000
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If you are using a mortgage broker, they will coordinate everything.

Otherwise, if you have a Realtor working with you; they can coordinate the inspection (you should go along). The lender will coordinate the appraisal.

Most loans will have a 60-90 lock in for the rate. You should be able to hit that as long as the seller is agreeable.
 
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