Whenever you make a large purchase, such as a house or a car, you will likely need to make a down payment. How much down payment do you need? It depends on the purchase and who is giving you the loan. What happens if you change your mind on your purchase? Will you lose your down payment? Learn the ins and outs of down payments here.
Today on the Ilyce Glink Show, we talked about Operation Malicious Mortgage, the FBI's huge national takedown of mortgage fraud schemes. We also talked about how the FHA is going to renew attempts to get rid of third-party down payment programs, like Nehemiah, and why that's so important. For show notes and updates through the week, check out her blog at www.thinkglink.com/blog , and sign up for her free weekly newsletter. Check out the videos at www.expertrealestatetips.net. And be sure to subscribe to her YouTube channel.
Lenders want to see buyers put down their own down payment, otherwise it could be seen as mortgage fraud. There are legitimate ways for a seller to assist a buyer in the purchase of a home and avoid possible fraud. Some loan programs will allow a seller to contribute 3 percent or even 5 percent of closing costs that might be paid by a buyer.
After a home sale falls through, a buyer asks about getting earnest money back from a real estate agency. The real estate agency cashed the earnest money check. What can the buyer do to get her earnest money back?
Mortgage lenders require appraisals before issuing home loans. What happens if the home you want to buy appraises lower than what the seller wants? It depends on the contract. The buyer may lose his earnest money if the home does not appraise out and the seller is unwilling to lower the price. It's up to the buyer to cancel the home buying contract if the contract permits him to do that.