Mortgage Loan Offer

dpento01

Registered User
Messages
12
I have received approval for a mortgage in principle & I am in receipt of a mortgage loan offer letter. The mortgage is for €85,000. In the conditions precedent section of the letter it states that the purchase price of the property cannot value less than €145,000. That would be around the range I am looking at but why would they be that restrictive? I mean if I see a property I like at say €139,000, I would not be able to go for it, I would have to wait for one at €145,000 or above. What is the reason for this?
 
That's probably not what it means, for you to get the 85k the property must be worth 145k, if you find one for cheaper they will just reduce the loan amount to match.