2086 Shares

If i take a loan out with the bank for a condo, that means that i dont have to put any down right?

If i take a loan out with the bank for a condo, that means that i dont have to put any down right? Topic: Meaning of underwriting a loan
June 17, 2019 / By Anna
Question: i want to buy a condo so i was thinking about taking out a loan, and paying off the whole thing which means that i dont need any down right?? also, lets say the condo costs 150,000 what else do i have to pay?? and what are some requirements for getting one?? any help please i appreciate all answers very helpful what if i were to just get a loan then for just the downpayment... would that be good to do it like that thanks again
Best Answer

Best Answers: If i take a loan out with the bank for a condo, that means that i dont have to put any down right?

Windsor Windsor | 2 days ago
If you go to the bank for a loan they are gonna want to know what you are putting up a collateral. That is the first question.When you tell your bank that you are purchasing a condo then the you start with the procedures of financing a property. First of all most banks will only lend up to 80% of the appraised value of the property. So you would be required to come up with at least 20% of the value. Your immediate cost for the down payment in your value of the condo at $150,000 would be $30,000. Then there is the normal closing cost, which can be paid by the seller. There are other sources of procuring a mortgage loan and that is through a FHA underwritten mortgage loan. The down payment requirement is about 3.5%. Now the only way I can see this working with your bank is if you have sufficient funds so as you can get a signature loan based on assets you have in your bank. I hope this has been of some use to you, good luck. "FIGHT ON"
👍 192 | 👎 2
Did you like the answer? If i take a loan out with the bank for a condo, that means that i dont have to put any down right? Share with your friends

We found more questions related to the topic: Meaning of underwriting a loan


Windsor Originally Answered: I specify the car loan with certain bank, when bank declined, can dealer force me to purchase the car?
It depends on your state but, generally speaking, if you have not signed the Bill of Sale then you have not purchased the car. Sales contracts are usually nothing more than a tool that lays out the terms by which you and the dealer come to some agreement to enter into a real sale. As such, they are almost never enforceable as a real sales contract, particularly if one of the terms is not met (credit from your lender). It's likely that the dealership is trying to strong-arm you into purchasing the vehicle even though you were declined by your preferred credit provider. Talk to a free legal clinic in your area for local law, but I think you're okay. In the worst case scenario, when they provide you with the new lender's name and phone at the dealership, just call the lender and tell them you're planning on entering into bankruptcy as soon as the sales contract is executed. Problem solved...
Windsor Originally Answered: I specify the car loan with certain bank, when bank declined, can dealer force me to purchase the car?
Yes you are obligated to purchase the vehicle if there are no changes to the contract. The dealer owns the contract and can sell it to who they wish, your lender has the right to sell it also by the way. Good luck. I own two small dealerships and have been in the car business 6 years.

Seymour Seymour
You'll have a hard time finding someone to finance your place 100%. The bank wants to know your property is a good risk & if you don't put anything down that means they own it 100%. If real estate prices go down even a tiny bit they've already lost money on you. Also, if you can't afford to put money down (I'm not saying you can't) then they have to wonder if you can afford to pay the mortgage. Nothing's free - if you didn't have to put money down or got a low payment, they make up for it in higher interest rates or longer terms. Those really mess you up in the long run. Buying your own place takes a lot of thought & research before committing to a loan. Don't get sucked in too quickly to deals that sound great.
👍 80 | 👎 0

Nevan Nevan
You need to sit down with a local realtor Not a lot of lenders are doing 100% financing unless you have really amazing credit. Closing costs, comissions, title company, recording fees, insurance, home inspection....
👍 79 | 👎 -2

Nevan Originally Answered: I want to take bank loan to buy used car,how bank will provide the money i want in order to buy used car?
First you go to the dealer and select a vehicle you want to purchase. He will then have you fill out a credit application after giving you the exact figures for the vehicle. He will then submit the applications to the bank(s) he uses for financing. If you come back approved, then they will fill out the paperwork. After the paperwork is complete and signed, you then have your new car. If you have a down payment you plan on using, the you take that with you and give it to the person you sign papers with. After that is done, the dealer submits all your financing paperwork to the bank and they in turn get reimbursed by the bank for your loan. Usually by wiring the funds to his checking account. After that is done, you get your payment book from the bank, registration from the dealer and title with lein holder from the DMV. Now, you should know that if this is the first vehicle you are buying on credit, it may not be approved. First time car owners are hard to get financed unless you have credit w/a credit card or other loans (to show you have established credit), you have lived at your address for a long period, you have a bank account and worked at your place of employment for a while. Like I said, if this is your first vehicle, you may have to get a cosigner to be approved as well. If you get the loan through your bank, then you call your bank loan officer and give them all the details about the vehicle you are purchasing, or you can take them the figures you will need from the dealer/individual. If you are approved, then they will give you a check made out to you and the place/person you are buying the car from. You in turn need to sign the check over. If you sign up for automatic bill payer with your bank after you are approved, then after you fill out your financing papers at the dealer, they will tell you what day of the month you loan will be deducted from your account and how much. But you have to ask for this option and sign a form with all of your bank account information on it. If you go this way, it usually saves you .25% on your loan interest.

If you have your own answer to the question meaning of underwriting a loan, then you can write your own version, using the form below for an extended answer.