Hi there. My husband and I are in the middle of buying a house, and we've run into a little financial snag.
Nobody told us in the beginning exactly how much everything was going to cost. The seller is covering the closing costs, but they had us pay for the inspector and appraisal. We figured we could do that, because they gave us a beginning estimate within a price range we could afford. So we agreed to it. Now that we have already paid the earnest money and the inspector, we've run out of funds. Paying for the est $650 appraisal would leave us with $55 for the rest of the month to cover food, formula and diapers. We've asked them if there is a possibility of postponing the appraisal until the beginning of next month, and they're saying it has to be now. I'm wondering if what they say is true, or if there is any possible way of waiting. I'm freaking out a little. If anyone can help me out, it would be greatly appreciated.
(0) | asked by: Katie Neumann | share | 6 months ago | Report
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Viewing Answers 1 - 6 of 6
Did you ever meet with a mortgage lender? If you did, they did not do you any favors. Do you think it is the seller's responsibility to pay for your inspection and appraisal? At this point, you are at the mercy of the sellers. I am assuming you have an agent representing you. If you did not, you very likely are going to learn a very valuable, yet costly lesson. This is why having a good realtor represent you is a good idea.
Sorry to hear of your dilemma. It is important to keep in mind that most problems in home sales are worked out because a home purchase is often a win win transaction. You want to buy, the seller wants to sell. I find that when everything is in the open with all parties a solution is normally found. Talk to your broker and encourage him/her to discuss it with the other side. Talk to your lender. Maybe they will allow you to pay at closing. Tell them your earnest money is sufficient to cover it if for any reason it does not close. Best of Luck. I hope it all works out.
The main thing the lender might be worried about is your rate lock which could expire. Maybe if that is the issue and the lender cannot delay the appraisal then maybe you can borrow the money from a family member. I would contact another lender in your area and ask if they too have the same guidelines.
I am sorry to hear you are struggling. Your lender should have checked to make sure you had enough funds to do this. Typically they check to make sure you not only have the necessary funds to close, but that you also have the funds for a couple of months of expenses after the closing. Your lender is also supposed to provide you with an estimate of your closing costs at the beginning of the loan process. I am also sorry to say they are right. It is normal in MA for the buyer to pay for the inspection and appraisal so it is not as if the sellers were asking you to pay for expenses that were their responsibility. However, talk to your lender. The cost of the appraisal could possibly be paid at closing which would buy you some time. The sellers can't wait a month to let you do the appraisal because the appraisal is required to start the loan process. I imagine they have plans to buy another home and this would hold them up. Somehow you do need to make this work. If you can't buy the house, you will lose your earnest money deposit. Your lender should have a vested interest in helping to make this happen. So be open with him/her about the situation and ask them to help you find a solution. Otherwise, is there a family member who could help you out?
Perhaps the seller will pay it and you can reimburse the seller at closing?
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