(Closed) first time home buyer

posted 7 years ago in Home
Post # 3
Member
1766 posts
Buzzing bee
  • Wedding: April 2011

You do not need to put down 20%.  We certainly didn’t and we do not have an FHA loan either.  Are you pre-approved for a loan yet?  If not, I would do that as soon as possible.  This way, you will be much clearer of how much you can borrow and how much you need to put down.  Also, the seller might not take you seriously if you are not yet pre-approved.

Post # 4
Member
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

It depends on your credit ratings and the market in your area as to whether the bank will be ok with less than 20%. You won’t know until you try! In the bay area where we are moving, they really are cracking down on less-than-20% down payments, but housing there is crazy expensive. I wouldn’t WANT to put less than 20% down there, because we wouldn’t be able to afford the higher mortgage payment!

Post # 6
Member
1766 posts
Buzzing bee
  • Wedding: April 2011

Wow, that’s amazing!  89k would be a 20% down payment for many houses in our area!

Post # 7
Member
6015 posts
Bee Keeper
  • Wedding: March 2012

Also don’t forget about factoring in the closing costs.  Those caught me off guard, I had the cash for the down payment but had to scramble for the closing costs.

Post # 8
Member
3520 posts
Sugar bee
  • Wedding: March 2012

Ask your realtor to refer you to a mortgage broker.  They will find you the best mortgage for your particular circumstances.

Post # 9
Member
192 posts
Blushing bee
  • Wedding: May 2012

Yes, they are still doing FHA mortgages. You’ll have to pay PMI, but it might be worth it if you are still saving money over renting. It really all depends on your credit. It’s harder to get a loan now with less than 20% down, but not at all impossible. Good luck!

Post # 10
Member
150 posts
Blushing bee
  • Wedding: November 2011

i know times have changed and such, but whatever you get pre-approved for is NOT what you can afford.  the banks don’t know how much money you are comfortable spending per month and don’t let them try to tell you.  only you know what you can spend.

that being said, factor in money for repairs.  things will eventually need to be replaced and you should have some savings for things like that.  and also remember to factor in fun and general standard of living too.  having a house and no money to do anything else is no fun.

Post # 12
Member
14445 posts
Honey Beekeeper
  • Wedding: June 2011
Post # 13
Member
412 posts
Helper bee
  • Wedding: September 2010

We are in the process of buying a home right now. We are using a FHA loan so therefore we only need to put 3.5% down but including closing costs we needed to save $12,000 just to be safe. That’s for any house under $100,000 whick is a lot less than that said we could “afford”. Your first step should be talking to a mortage person and get pre-approved. Good luck!!!! Keep in mind that FHA loans do have a lot of requirements and regulations. 🙂

Post # 14
Member
1701 posts
Bumble bee
  • Wedding: October 2010

If your credit is good and you have at least the 3.5% down, you should be OK.  However, there will be an extra inspection so the house has to be in really good condition.  In addition to your down payment and closing costs, you will also need “earnest money” when you make your offer.  This is basically a deposit that the seller gets to keep if you back out of the transaction without a good reason.  A good reason would be a significant issue that comes up during inspection, etc.

A word of advice, re-selling a home is very difficult and will continue to be that way for a long time, especially in a small town.  If you do not want to be in this house for at least 10 years, don’t do it.  It REALLY sucks to have a house you can’t sell–and I say this from a position of experience.

Post # 16
Member
3049 posts
Sugar bee
  • Wedding: January 1991

Most banks around here won’t approve you unless you’ve been working for 2 years at the same job. Or maybe it’s 1 year… I dunno. So just remember that along with the monetary issues. Not that I know much about buying a house, we’re renting because we didn’t have a down payment (not even 1%) and he had only been working a year at his job. So we didn’t even try to mess with the banks, so they could tell us we were approved… and then take us for a ride like they did his brother. Ugh.

The topic ‘first time home buyer’ is closed to new replies.

Find Amazing Vendors