What if the home loan is greator then the list price of the home?
By apples99
@apples99 (6556)
United States
December 9, 2012 8:23pm CST
I'm trying to educate myself on the home buying process so forgive me if my question seems silly or dumb, but I don't know a lot about home buying, sure I can ask a realtor but I don't want to seem uneducated around the realtor lol
My question is if you pre-qualify for a home loan greater then the homes list price or value of the home what happens with the remaining balance of the home loan? I really need to know.
1 response
@dorannmwin (36392)
• United States
10 Dec 12
Well, when you pre-approve for a home loan, it is simply telling you the maximum amount that you would be able to finance a home for. However, that definitely doesn't mean that you have to buy a house that is at the top of your price range. If you are to purchase a house that is less than the amount that you were pre-approved for, then you will see that your mortgage payment will be a lot less than what was stated with your initial pre-approval.
Instead of owing as much money as they said that you could borrow, you would only owe as much money as you actually borrow.
