2007-03-26 08:06:40 · 8 answers · asked by eddclwnems 1 in Business & Finance ➔ Renting & Real Estate
The other answers are ABSOLUTELY correct. However included with a down payment you also need to have what's called reserves. The banks require you to have 2-6 months of your monthly payment in reserves. Now sometimes they take this from 401K, life insurance face value and other liquid assets but for the most part I would save about 10g's. Have any more questions email me I'll be happy to help out. =0)
2007-03-26 08:14:51 · answer #1 · answered by peapod_mommy 2 · 0⤊ 0⤋
You should have enough saved to make the down payment and pay closing costs, plus enough left over to cover 3-6 months of all monthly bills including your mortgage payments. Having more than just the down payment saved will give you the security of knowing you have a cushion to fall back on. Also, you would be surprised at some of the expenses you hadn't planned on that crop up after buying a house.
2007-03-26 15:16:30 · answer #2 · answered by eilishaa 6 · 0⤊ 0⤋
It really depends on what kind of monthly payments you're willing to deal with. Some lenders will start you off with about a quarter of the price, but others will go higher if you have less that decent or no recent credit. Also, keep in mind that property taxes can kill you financially. I'd recommend talking to a real estate agent and learning more. Also: AVOID ADJUSTABLE-RATE MORTGAGES! Stick with a fixed-rate; you won't find yourself in a hole like many others are right now with A-R mortgages; that can definitely ruin you. F-R mortgages have been around for ages; these new A-Rs have only come about recently, but they're a bad choice. Good luck.
2007-03-26 15:17:13 · answer #3 · answered by knight2001us 6 · 0⤊ 0⤋
If you can save enough to put a 20% down payment on the house, you wont have to pay any mortgage insurance, if not, you need to think of all types of emergency situations that could come up. Generally they say to have enough to support yourself for 6 months in savings in case something happens.
2007-03-26 15:10:36 · answer #4 · answered by ♥♫♥ Crystal ♥♫♥ 4 · 0⤊ 0⤋
It all depends on your lender..soemtimes you don't need a downpayment @ all. I am buying with no down payment but I have money for the closing costs btwn. $7k-$10k for the price of your house. But you also have to have reserves for the bak to lend in case somethign happens & ur out of a job or you take a pay cut. Talk to a lender about your options & def. do not get an ARM loan do fixed rate...they r soooo much better in the long run.
2007-03-26 16:08:29 · answer #5 · answered by Jen J. 3 · 0⤊ 0⤋
That will all come down to how much you are placing as a down payment, how much your mortgage lender wants to see in your bank account prior to closing (yes, they can require a certain amount), and how much you will need for closing costs themselves.
Take this for example......hubby and I are closing on a house on Thursday of this week. Our mortgage lender wants to see us with $2100 in the bank prior to closing (which we already have). Out of that, all we have to pay at closing is $1100 (seller is paying most of the closing costs). We weren't required to put down a down payment.
It will all come down to your particular situation, and what is general in the market for the area you are wanting to move to. I would start off talking to mortgage lenders, and see what they say.
2007-03-26 15:14:28 · answer #6 · answered by Critter Lady 4 · 1⤊ 0⤋
5-10% for a down payment
2007-03-26 15:09:14 · answer #7 · answered by DAD_to_3 3 · 0⤊ 0⤋
$33,000
You should use $22,000 for a down payment, and the rest will cover your closing costs and required reserves.
2007-03-26 15:16:24 · answer #8 · answered by Lisa A 7 · 0⤊ 0⤋