Can I pay more for my home than the bank wants me to?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can I pay more for my home than the bank wants me to?
I have a home under contract for $310,000; I have $105,000 in cash and am trying to get a $205,000 loan. The appraisal came in at $275,000 and I am OK with still paying the $310,000 but the bank does not want to give me the loan because they think the price is to high. Can the seller lower his price for the home and I pay him some cash such at $10,000 or $20,000 toward the purchase of the home after we close with the bank?
Asked on February 1, 2011 under Real Estate Law, Hawaii
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
What you are asking is is it okay to pay cash under the table. No attorney in their right mind is going to advise you to do that. What recourse would you have should something go wrong and you needed to prove the extra money given? And how would you recoup the money on the sale of the house if it is not worth what you pay for it? I think that you really want this house for whatever reason. The bank is not going to loan on the appraisal given and that will be the seller's problem no matter who is going to buy the house. So, let me ask: are there any content (that are not "fixtures") that can be added to the contract and purchased with the house? As an attorney in your area about this all. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.