If you are pre-approved for a loan that’s higher than the amount of the home, what happens?
Let’s talk about what this means in this video, “What if Your Home Offer is Less Than Your Loan?”:
What if Your Loan is More Than Your Home Offer?
If your loan amount is more than the home you want to purchase, what happens to the difference of the loan amount? Let’s just say as an example that you are preapproved for a loan up to $200,000 and you put an offer on a home for $180,000 – what happens to the extra $20,000?
The answer is, you don’t get to use it. The loan amount then drops to $180,000. Then you will have your down payment for the home, your closing costs, and other costs for buying the home that will now be associated with the loan amount of $180,000. So you just saved yourself $20,000 to pay back!
More Common Questions about Buying A Home
As you probably already know there is a lot to the homebuying process. If you have more questions about buying a house, don’t worry! We have a list of common questions that homebuyers have HERE.
If you don’t see your question on this list, then please reach out! I would love to answer all of your buying questions.
Want more information? Download my Homebuyers Guide: Homebuyers Guide
Of if you’re a first time home buyer, download this Buyers Guide: First Time Homebuyers Guide
Have Questions About Buying a Home in Birmingham, AL?
If you are interested in buying a home in the Birmingham, Alabama area, then you may have more questions about the process! Contact me and let me help you with your buying needs in the Greater Birmingham, Alabama area. If you’re new to the Birmingham area or looking to relocate to Birmingham, Alabama, please feel reach out to Dianna Howell with The Howell Group: 205-568-5435 or dianna.howell@kw.com
For information on Pelham, Alabama or Birmingham in general, contact real estate agent Dianna Howell, a top buyers agent in the Birmingham, Alabama area.
Visit our website for more information on the Birmingham area: https://diannahowellrealtor.com/category/lifestyle/
🔑🏡 Want to learn more about the buying process? Then read this article for 6️⃣ easy tips: Six tips to Buying a Home
📕 Read more about the Birmingham area in this post: Relocating to Birmingham, Alabama
I have plenty of resources and information to provide including my expert help. Call me today and let’s get started on the search for your new home.
Sincerely,
Dianna Howell
The Howell Group of Keller Williams in the Birmingham Alabama area
Top Birmingham Real Estate Agent
