My husband and I are purchasing our 2nd home for $165,000. We can put $7,000 toward the down payment from the sale of our first house. To get 5% down on the new house would be $8,250. This would be fine, because we have over $3000 in the bank after paying this month's bills, and only need to use $1250 of it.
However, our bank will not allow us to to use the $3000 that we have (from recent paychecks) because it hasn't been sitting in the bank for 2 months!!! So they are requiring us to get 100% financing.
Is this _as ridiculous as it seems_, or are there other banks which would allow us to use the money we have earned at our jobs - which we can prove with our paystubs!!!
We don't have the luxury of sitting around and waiting for 2 months to prove ourselves to the bank (because I have been transferred with my job). And the 100% financing is a bad deal as far as interest rates and the extreme pickiness of the underwriters on every possible issue.
Should we try another bank?
2007-11-24 13:57:02 · 9 answers · asked by jenatasha 2 in Business & Finance ➔ Renting & Real Estate
this differs from bank to bank but
Downpayment is required for any property purchase.
the money in the bank for 2 months etc is also requrie for the purpose of seasoning.
i feel you shall check with other bank if they give u better deal.
2007-11-25 21:00:54 · answer #1 · answered by KHS 3 · 0⤊ 0⤋
A down payment is an initial payment of cash as a condition of giving you the larger loan. If the bank sees that you're not willing and able to put your own money into buying the house, why would they want to put THEIR money into it? Think of it as a gesture of faith. Different loans have different thresholds. You might find a more expensive loan with a 5 percent down payment (paid to the seller of the house, not to the bank), or a really cheap loan if you can put down 50 percent of the cost of the purchase, meaning you not only have significant equity in the property, you can qualify for a smaller loan at a better interest rate.
2016-05-25 06:41:49 · answer #2 · answered by eneida 3 · 0⤊ 0⤋
That seems a little odd. In most cases, if the money in the bank is just your paycheck and you can prove that, it doesn't need to have seasoning on it.
With deposits larger than what your income is where it could become a red flag to your lender. But if you have the pay-stubs or can show the direct deposit from your employer, that money shouldn't have to be there for the 60 days.
I would suggest checking with another lender - one with lots of programs and that can provide same day approval, based on what you currently have in the bank. You are right, having the 5% down will definitely give you more options and lower interest rates.
2007-11-26 04:13:23 · answer #3 · answered by Quicken Loans 5 · 0⤊ 0⤋
Your bank is raking you over the coals. You need to get a good broker working for you. I suggest Hometown Banc Corp. My mom used them. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at www.totaldebtsolutionsllc.com and a Hometown loan officer will contact you .
2007-11-26 08:34:53 · answer #4 · answered by Nicki W 2 · 0⤊ 0⤋
You should use a broker that has hundreds of programs rather than a bank that has just a few of their own. Get a broker and have them find you a home loan.
They are requiring what is called "seasoning", different programs vary on length of time and necessity of this. You really need to look at everything that is available instead of limiting yourself to a single lender. Get a few quotes before you sign, they are free.
2007-11-24 15:18:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Try another bank. They're trying to make certain you really have the down payment and aren't just working the float, which I don't blame them for, but normally you're just told to show up at the closing with a certified check for the down payment.
2007-11-24 14:22:23 · answer #6 · answered by Oh Boy! 5 · 0⤊ 0⤋
You should definitely shop around and get a couple more opinions. Each bank has different guidelines so just dont go off of what one person says. Hope this helps
2007-11-24 14:15:58 · answer #7 · answered by WeLoan.Us 2 · 0⤊ 0⤋
What your bank is doing is illegal I think. It basically amounts to them fixing it so that you have to go with the higher interest rate(although not always a bad thing, if you are going to be living in the house it definitely is). You may want to consult with a lawyer about this since this is highly unusual.
2007-11-24 14:24:48 · answer #8 · answered by bolinger81380 4 · 0⤊ 3⤋
Absolutely, shop around. It doesn't matter how long the money has sat, only that you have it.
Remember, a 15 yr fixed rate loan, nothing longer.
2007-11-24 14:39:44 · answer #9 · answered by terrellfastball 6 · 0⤊ 2⤋