Monday, August 27, 2018 / by Rachael Dicioccio
Put in a simple example: Susie HomeShopper is Pre Approved for $275k. In searching for a house with her favorite Rachael the Realtor, she falls in love with a house and puts an offer in at $249k. The offer is accepted. She does not at closing get a check for $26k to help with repairs, or furniture, or anything of the sort. No, she just has a smaller monthly payment to the mortgage company than she would have if she bought a house for $275.
While there are loans out there specific for remodel funds or "cashback" at closing, these have very specific requirements and you should have long talks with your lender until you are sure you understand them.
Instead, a pre approval amount is a possible amount that your lender COULD approve you for. However, you do not have to go to this amount. Many people, prefer to stay under it and make sure their monthly payment is more manageable.
We know this "home buying stuff" can be scary, stressful, and overwhelming. Allow this Realtor to be your calm, knowledgeable guide through the process. I am here to answer any questions you might have... I promise I will do so way better than reality tv.