I didn't think we would have to put any money down at all and any down payment is between me and my mortgage broker. The thing is, he's putting a ton of pressure on us. He claims if we don't, we could lose out on the house, but I'm not really afraid of that because everyone in the area we're looking is very desperate to sell. So if these people say no, there's other properties to make offers to. What should we do? We could get the 10K together, I just don't want it tied up like that.
2007-10-25 07:57:20 · 8 answers · asked by newto413 2 in Business & Finance ➔ Renting & Real Estate
depends on the mortgage programs.
with Mycommunity it's a zero down program...with 620 you can avoid high pmi payments
with FHA it's 2.25% down payment requirement.
10,000 can be going towards your closing costs...or you should have the seller pay for it. your broker should explain why 10k is needed and where it's going.
look at the equivalent percentage of 10,000 to your purchase price. if the house is 200k....then 10k will make it 5% down. if he's not using mycommunity or homepossible programs then you may be required to put money down.
find a broker that will help you with the zero down programs
2007-10-25 10:21:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Don't let this person pressure you. Talk with your mortgage company and see what they say. I agree with 100% financing I didn't think you would have to put any money down but the way everything is now it's hard to say. I know you usually have to give Earnest money when you put a contract down on a home to let the seller know you are serious. If you back out they get to keep the money because they didn't show it to anyone else. This is a big deal so don't let anyone pressure you. The broker is working for you not the other way around.
2007-10-25 08:10:04 · answer #2 · answered by KM 3 · 0⤊ 0⤋
Yes, buying a house you would need to have some money. You need money in your account (at least 3 months worth of your monthly payments). You may have to pay for closing cost as well. What your mortgage broker is trying to do is have you guys pay for the closing cost and the house is 100% financed. Closing cost range from anywhere 5k and up. No matter what if your buying a new home you would need at least 10k for reserve in the bank and closing cost.
2007-10-25 08:07:07 · answer #3 · answered by I_know_it_ALL 3 · 0⤊ 0⤋
The broker is not asking for a downpayment. He's asking for earnest money, which is a deposit held in escrow by the brokerage firm. The earnest money encourages the seller to accept your offer, and is a pledge of good faith in said offer. If you elect to walk away from the offer after everything is approved, then the seller gets to keep that money. If you consummate the deal as agreed, you can either use the earnest money to reduce your mortgage, or ask for it back at closing, while continuing with a 100% mortgage.
2007-10-25 08:07:09 · answer #4 · answered by acermill 7 · 1⤊ 0⤋
If you are working to come up with $10K to put down then perhaps he is not sure you will actaully be able to get the loan. Even with a 100% loan, you still have closing costs to think of and that can easily come in around $5-8,000. Just dont be shocked if you get to closing and find you owe a few thousand.
2007-10-25 09:17:06 · answer #5 · answered by VAgirl 5 · 0⤊ 0⤋
There's earnest money and closing costs. That could be what he's talking about.
If not...
You have a better chance at getting a loan if you put money down. The more money you put up front, the better rates you get. Maybe he can't get you financed at 100%.
I'd ask for clarification.
2007-10-25 08:24:13 · answer #6 · answered by Roland'sMommy 6 · 0⤊ 0⤋
it is normal to require a 10 to 20 percent down payment.
2007-10-25 08:05:12 · answer #7 · answered by Jan Luv 7 · 1⤊ 2⤋
when you buy a home you usually have to put around 30% of the cost on it so maybe you should see a lawyer if youre not sure
2007-10-25 08:06:37 · answer #8 · answered by Anonymous · 0⤊ 2⤋