Ready to invest in property in 30days but running into red flags.

[Richard Moore]

I'm new to biggerpockets.com and iv'e been watching bigger pockets podcasts since Feb 1, 2017, gathering information on investing in rental property. I have a mortgage broker that's helping me obtain my first rental, but something isn't sitting right with me. Let me explain. I found a foreclosed home priced at $40,000.00. My broker tells me that I need to have 25% ($10,000.00) in order for the lender/bank to give me a loan to purchase and rehab this property. These are the problems that i'm running into.

1. We haven't looked at the property to view any damages and what the rehab cost will be.

2. The topic of Contractors and appraisal hasn't come up AT ALL.

3. He's telling me that I will have to pay the closing cost that is 12.5% of the cost of the home ($5,000.00). Which means I need $15,000.00 at closing or no deal

4. He advise me NOT to offer to buy the property lower than $40,000.00. Due to other investors possible bids.

5. The loan will only be enough to purchase and rehab the property. No extra funds for extra costs during the rehab,  loan payments until property is ready to rent and rented, and invest in another property months later.

This doesn't seem right to me, and I don't want to lose money on my first deal. Am I over thinking this or is there a really big problem? Please help, any advise is welcomed.