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First-time home buyer curious about FHA loan and Short Sales????

Im very new at this, being a nervous first-time home buyer at 21! Anyway, I started looking at homes back in October. I finally found the perfect home for me priced at 69,900 but turned out to be a short sale (only downfall i guess). Well Its now Jan 14th and I finally got word from my agent. She said the appraisal came back at 78,000. My lender informed me that my payment would be around 663 including association and what not and my down payment would be around 2730. which to me isnt bad. Anywho, I have a couple questions now! 

 First and foremost, I have about 1500 in my bank acct. Im gonna be getting my student loan tomorrow for 5000. Will that be a problem at all? 
2. Seller agreed to pay 2.5% closing cost so is the 2730 plus inspections all i would pay? if not what else? 
3. Once i sign the addendum saying i agree, if i agree, to the 78000, how much longer will it take for me to close?? 
4. Can I request another appraisal if i think it might be overpriced?

umm.. i think thats it for now.. and im sorry if my questions seem a little dumb or whatnot.. I would really appreciate your answers. THANK YOU
  • January 14 2010 - Sparks
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Answers (6)

the appraisal done by the shortsale is owned by the seller's lender. It won't be used in your loan process; it was only used by the seller's lender to determine the value of the asset.

Your lender will order an appraisal. It won't really be "another appraisal".

  • January 21 2010
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In a short sale, the seller's lender will always request the sales price be what their appraisal/BPO came in at.  However, the majority of lenders will still approve a lower amount as long as it falls within their net threshold.  If your Realtor is experienced with short sales, he/she should have a pretty good idea as to what the lender needs to net in your transaction.

Also keep in mind that the appraisal done by the short sale lender was more then likley just a BPO conducted by another agent (basicly a CMA).  Your lender is still going to conduct their own appraisal before they agree to finance your loan.  If this appraisal comes in lower then your contract price, you would then have a legitamate reason to ask for the price to be lowered.  If they will not change the sales price you then would be able to walk away from the transaction, as there should be a contingency in your offer that would allow you to cancel if you are unable to get your loan approved.

As for clossing costs, you will probably wind up with slightly more then 2.5% for clossing costs (depends on how the offer was written).  In which case, you would be responsible for anything over the 2.5% credit from the seller, along with your down payment (3.5% of the sales price for FHA). 
  • January 21 2010
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Just because the property appraises for more than your offer price doesn't mean you have to pay that amount(unless it was written that way in the offer). You will still be paying your negotiated offer price.
  • January 14 2010
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im curious to hear how other LO's answer the questions reguarding ordering another appraisal...
  • January 14 2010
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i meant to say i have 4500 in my acct.. would it be a problem if i have loan money deposited in my acct? and like i said, its a short sale and im not sure how the process works but the bank counter offered so now I dont know what to do.. are my only options say yes, no, or can i request another appraisal?
  • January 14 2010
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The borrowed funds cannot be used for your down payment.

Are you saying you are agreeing to increase the sales price because the house appraised higher?
  • January 14 2010
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