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Roger
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 26317
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by West
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Hello..Im i the process of purchasing a home for $375,000

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Hello..I'm i the process of purchasing a home for $375,000 here in Long Island,NY.I was going to go the FHA route and although it would be less of a down payment the mortgage would be too high.The individual who calculates the possible mortgages and receives all the paperwork from the real estate told me if I could get $30,000 he would be able to ask for a concession fee and get an extra $10,000 for closing fees and get a conventional loan instead where my mortgage would be more affordable.When I go to bring the down payment I see that the purchase price was $385,575 not the $375,000 that we agreed on.With that being said the final price was $397,500.I would like to know why,if I only need about $10,000 extra from the bank would it come out to almost $12,000 on top of the needed money? The concession fee is 3% (X) the purchase price of the home which should,if bought at $375,000 turn up to $386,250.The final price here was $397,500 as I see that the purchase price on the contract said $385,575 which wold make perfect sense because 3% of that price would be about $397,142.25..Am I getting the math mixed up here or are these guys just trying to get extra commission by having me borrow from the bank more than is needed.On top of that I was under the impression that a conventional loan is attainable at 20% down on a home.The $40,000 that I will be putting down here is only about 10% of the supposed $375,000 i'm purchasing this home for and wouldnt make me eligible for a conventional loan but yet thats what it states im getting on the contract and what the real estate agent told me.Im not totally clear on this,as maybe im looking too deep here,but it is a big purchase and since there is a little grey area here,I would like to know if there is a small discrepancy that can be cleared up rather quickly or should I run for the hills from this Real Estate Agency and look elsewhere..Thank you very much
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Roger replied 9 months ago.

Roger : Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney. Thanks for your question. I'll be glad to assist.
Roger : Hopefully, this is just an issue of the contract price being a typo, which is the reason for the $10,000 difference.
Roger : The first thing to do would be to bring the error to the attention of the agent and try to have that fixed.
Customer:

Is there any way the extra 11k plus would be used for anything other than the help of the closing costs?

Roger : However, if they're trying to do the bait and switch on you and trump up the price to receive more money from the transaction.
Roger : The money could be used for something else unless the contract specifies where the money goes.
Customer:

Thats what im trying to figure out..Why,if all I need is an extra $10,000,would there be and extra $12,000 on top of that..Im going to see him today,is there anything I should ask specifically other than what Ive told you?

Roger : Yeah, I understand your confusion. It just appears that they've increased the sales price - - hopefully unintentionally.
Roger : Even if there's an expense being added, it should not be done by increasing the sales price.
Roger : The main thing to ask is why there's an extra $10,000 in the contract, and what's it for.
Roger : Hopefully, this is just a typo, by if it is not, then you need specific information on why this amount is being added to the agreement.
Customer:

There should be no reason for them to ask for another almost 12k if all we need is 10k

Roger : I agree with that.....
Customer:

Roger,I thank you very much for your feedback my friend

Customer:

I will address this issues with them today

Roger : Like I said, maybe it's just a typo that no one has noticed.
Customer:

Your right..I did mention it to the agent yday and he was babbling some type of concoction..

Customer:

He couldn't explain it

Customer:

I will get things cleared up today hopefully

Roger : You certainly should demand to know what the increase is for before you agree to go forward.
Customer:

once again,Roger thank you for your time..

Roger : No problem. Thanks for allowing me to assist. Please let me know if you need anything further.
Customer:

You got it.Have a great day

Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 26317
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and 4 other Real Estate Law Specialists are ready to help you

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