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lanny.shieh, Both Buyer and Seller in New York, NY

What is a good amount to save for a first time home buyer?

Asked by lanny.shieh, New York, NY Tue Sep 25, 2012

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11
Putting 20% down will avoid the buyer from having to pay PMI. Several different factors play a role in how much they'll need for closing costs. They should also have at least 6 months reserves (if not more) in case of any foreseen financial issues. All the best!

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
3 votes Thank Flag Link Sat Sep 29, 2012
Depends on the type of loan; FHA loans do require 3.5% dpwn; however for a personalized answer to your question, visit with any licensed loan officer; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
1 vote Thank Flag Link Tue Sep 25, 2012
I think you should start by paing off all of you existing debts, then think how much you can possibly afford. To be more exact compare with your earnings and how much downpayment you can afford. Some say that 20% will be good, but will it for you? Maybe you can do less or maybe you can even do way more. Search for tpe of loan, as first time buyer that has a steady job put down less than 20%
I would also recommend to check ou down-payment assistance program.
Web Reference: https://paydayloansat.com/
0 votes Thank Flag Link Tue Oct 2, 2012
it will depend on whether you are buying a coop - coops wil require at least 20% downpayment (each coop has its own requirements) and 2 years of mortgage and maintenance payments in liquid assets post-closing, which in addition to cash also includes money on your IRA, 401K and brokerage accounts.

If you are buying a condo and getting a bank loan, although only 10% is required by most condo buildings, most likely your bank will ask you to put 20% down. Plus closing costs for condo are higher and most expensive condo closing items are mortgage recording tax, transfer tax (if buying directly from a developer), title insurance and attorney fees.
0 votes Thank Flag Link Sat Sep 29, 2012
For a first time home buyer or any home buyer, the ratio of saving amount should have to be decided on the basis of the their earnings.
0 votes Thank Flag Link Fri Sep 28, 2012
In order to live comfortable I would have a down payment, closing costs, and a year of reserves in the bank. Your down payment will vary depending on the type of loan you get and closing costs will vary depending on the price of them home. Speak directly to a loan officer to determine what type of loan will work best for you.

Chris
0 votes Thank Flag Link Tue Sep 25, 2012
It depends on what tye of loan program you qualify for. If you qualify for a FHA loan, I would suggest 3.5% of the purchase price. You will have about 3% in closing costs as well but there's a way to roll in most ofwhat would be your out of pocket expenses. With an FHA, you may be able to roll in upto 6%. If you buy a $200,000 house you should save up at least $7,000.
0 votes Thank Flag Link Tue Sep 25, 2012
The bottom line is once you determine where you think you would like to live and the quality home you would like to purchase, that is, need some work, move in condition, etc speak to a loan officer who can better access the type of loan that you must obtain, the minimum amount that you will need including reserves, and last but not least your mortgage eligibility.
0 votes Thank Flag Link Tue Sep 25, 2012
Dear Lanny,

It all depends on what you want to purchase. If you are looking to purchase a Condo or Coop you will need the amount of the down payment (each building's requirement varies), some buildings require 10-25% plus closing costs (apprx. 10%). Per Benjamin's comment below. If you are looking to purchase a Single/Multi Family home, you can put as little as 3.5% down with an FHA mortgage, there are also FHA approved Condos that you can also put 3.5% down.

So the answer to you question basically all depends on what you want to purchase and how much you want to spend, you loan officer can advise you regarding your specific situation.

Good luck.
0 votes Thank Flag Link Tue Sep 25, 2012
It all depends on where you are looking to buy and how much things cost there, how big of a home you are looking to buy, the amout of financing the building allows, how good your credit is, etc. ... Some places do allow 90 percent financing and I've seen some people upstate not have to put any down payment at all if they're a first time home owner + have good credit. But it all depends on the actual home you are trying to buy + who you're going through to get the morgage + things like that. ... Naturally, the larger the down payment you can put the lower your morgage will be and the quicker you'll be able to pay + the less interest you'll have to pay.

If you would like to discuss further please feel free to e-mail me at patty@metropolitanpropertygroup.com.
0 votes Thank Flag Link Tue Sep 25, 2012
Take the amount of the purchase and multiply by 30%, you will need a minimum of 20% down payment, closing costs and some coops will ask to see 2 years of maintenance (or mortgage and maintenance) in the bank at time of closing.
0 votes Thank Flag Link Tue Sep 25, 2012
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