Quote:
Originally Posted by Cecil Terwilliger
That’s not how mortgages work. It’s always lower of purchase price or current value used for financing.
But he could get a private and then refinance after 6 months or a year, then your plan works.
Also, many people buy new builds with only a pre-approval in place, which aren’t worth the paper they’re printed on. Some lenders offer new build 12 month guarantees but the rates suck so no one uses them. Plus with how long construction takes, many expired.
Probably 90% of people who buy new builds just wing it and pray they still qualify at possession. Many who don’t end up getting private mortgages at double digit interest rates with five figure application and renewal fees.
The guy in this story is just a straight up moron or a liar. No one is getting a $1.5 or whatever million mortgage on $80k year not matter what rates are.
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You're right, that's how
legitimate mortgages work.
Welcome to the world of mortgage fraud.