Hey, as long as you're going to pay it back, why not? They don't care whether you got a good deal: just whether they're getting the money + interest back.
I know that here they won't give a mortgage if the house doesn't appraise for the asking price. At least not when I was getting a mortgage. That way if you don't pay the house should at least be worth what they're giving you.
They do care if you pay way more for the house than it's worth. Because if you default, they have to sell it again. The bank does their own evaluations and if the price you want to pay is outrageous for the property, they will turn down your mortgage application.
Can't speak to it from personal experience, but our realtor said she'd seen it happen.
Well, as Jan pointed out, the municipal evaluations don't necessarily calculate "worth". Unless you've got a piece of paper saying that the house sold recently, and for how much, the municipal amount can seem somewhat arbitrary.
However, that big of a difference ... Yeah, that would be a red flag in my book.
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branchandroot
no subject
Date: 2009-09-18 07:40 pm (UTC)no subject
Date: 2009-09-18 07:49 pm (UTC)no subject
Date: 2009-09-18 08:13 pm (UTC)no subject
Date: 2009-09-18 08:15 pm (UTC)no subject
Date: 2009-09-18 08:29 pm (UTC)Can't speak to it from personal experience, but our realtor said she'd seen it happen.
no subject
Date: 2009-09-18 08:36 pm (UTC)no subject
Date: 2009-09-18 08:43 pm (UTC)However, that big of a difference ... Yeah, that would be a red flag in my book.