I’m pre-approved for “X” dollars for my new Irvine home. Do I want to go that high?

by Robert Mack on August 28, 2009

in Irvine Real Estate

When you speak with a lender regarding getting pre-approved for a loan to buy a home in Irvine, the lender you use will determine a purchase price that you will qualify for based on the information you provide.  The question is, just because you have been approved for a purchase price, doesn’t always necessarily mean you may want to go that high.

The way to determine what price point you will feel comfortable purchasing at is by requesting a Good Faith Estimate from your lender.  Depending on the different purchase price scenarios, one can easily get a detailed breakdown of their monthly payments.

Avoid problems or surprises in the future and make sure that you know not only what you are approved for, but you also know what monthly payment is associated with that purchase price and make adjustments if necessary.

For more information on a Good Faith Estimate, or to speak directly with a lender and start your loan pre-approval process today contact Robert Mack.

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Post by Robert Mack

Robert has written 727 articles.

{ 2 comments… read them below or add one }

Herand August 29, 2009 at 9:59 pm

Hi;
I am interested in an investment property. I had my agent send me some listings in and around Irvine and Tustin areas along with some figures such as price, HOA dues, possible property tax dollar amounts—because I hate surprises—and so on and so forth. Here is my big question:
The owner had bought the property at $X dollars, and now it is and REO and the bank is selling it at $X-$150000 dollars. AM I TO UNDERSTAND THAT I WILL NOT ONLY NOT PAY SUPPLEMENTARY TAXES, BUT ALSO MAY RECEIVE MONEY BACK FROM THE COUNTY (sort of negative supplementary tax)? Because the property is now selling at a reduced price. Or am I dreaming. Your input will be greatly appreciated.

H.

robertmack August 31, 2009 at 10:02 pm

Hi Herand,

That is a great question! Many of the homes purchased as a short sale or a foreclosure (and even some standard re-sale homes) will have a higher assessed value than the final purchase price when you purchase your home. Through escrow, the tax amount that you/seller will pay will be based on the current home sellers assessed value, and similar to the supplementary taxes from the previous years, since your new assessed value will be lower, you will receive a credit based on the difference of the new and old assessed values! My advice would be to check with your CPA to verify this, however I have spoken to several escrow companies who confirm this to be true!

Robert

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