Home Buying in 60647>Question Details

mauricio949, Home Buyer in Chicago, IL

Do I need 20% cash to make a offer ??

Asked by mauricio949, Chicago, IL Mon Jul 1, 2013

I am not sure, but i would like to know about this home . li

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Answers

21
Hello Mauricio,

No you do not need to have 20% down to put an offer in, what you need is a pre-approval letter from a Lender that has already pre-qualified you by taking your application and getting certain financial documents such as

1. 2 years of W2
2. One full month of paystubs
3. 2 years of tax returns if self employed or using Schedule E income
4. 2 months of bank statements that show where the money for the down payment is coming from.

The three areas that a lender looks at qualifying a borrower are:

1. Credit score – a minimum of 640 FICO is needed
2. Loan to Value (LTV): 20% or more Downpayment or equity in a home – 96.5% to 19% require monthly mortgage insurance.
3. Debt to Income (DTI): lenders will lend up to 45% of monthly debt to monthly gross income.

To get todays rates and fill out an application, please go to my secured website http://www.guaranteedrate.com/MaryKayLaurent

You will be able to look at different loan options and APR and by selecting the green application button, you can setup you login information and fill in the application and run your credit (you can keep a copy – it is free) you should be able to fill in a joint application. so you know what your score is and review your credit report for any errors. If there are errors on your credit report, I can work with you to get them off the credit report.

Once you run credit, I will be able to review it and see what your options are to purchase a property based on your credit history.

My direct line is 773.516.6859 or call me on my cell phone 312.403.4150.

With warm regards,

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.516.6014
3940 North Ravenswood , Chicago, IL 60613
NMLS ID: 870598
The highest compliment I can receive are your referrals!
NMLS ID 2611 - NMLS Consumer Access - Licensing Information


State License Numbers: CA - CA-DOC870598 - 4130699, IL - 031.0032236 - MB.0005932, WA - MLO-870598 - CL-2611
1 vote Thank Flag Link Tue Jul 2, 2013
No, but it helps though. It used to be that 20% down was the standard amount required. Nowadays, with the help of the FHA, you can put as little as 3% down. It all depends on your ability to borrow, which is dependent on your FICO score.
0 votes Thank Flag Link Fri Dec 12, 2014
Not necessarily.....with FHA financing you may qualify for as little at 3.5% down. Speak to your local preferred lender for the best advice.
0 votes Thank Flag Link Thu Dec 11, 2014
Mauricio,

If you were planning on using conventional financing then 20% is the usual down payment. However, many bankers can provide you with a conventional loan with as little as 5% to 10% down. This of course is dependent upon your credit. There are also other financing options available. FHA works with buyers who can supply a 3.5% down payment. Many times closing costs can be paid by the seller as a credit to you as well. I would love to be of assistance if you have any further questions.
0 votes Thank Flag Link Tue Jul 9, 2013
Call Guaranteed Rate.

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com
http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.516.6014
0 votes Thank Flag Link Wed Jul 3, 2013
No, you do not. With an FHA loan you can put just 3.5% down.
0 votes Thank Flag Link Wed Jul 3, 2013
No, you do not. With an FHA loan you can put just 3.5% down.
0 votes Thank Flag Link Wed Jul 3, 2013
No, you do not. With an FHA loan you can put just 3.5% down.
0 votes Thank Flag Link Wed Jul 3, 2013
No, you do not. With an FHA loan you can put just 3.5% down.
0 votes Thank Flag Link Wed Jul 3, 2013
If you have 640 credit, make at least $40,000, and haven't had any bankruptcies or foreclosures in the last 3 years, you will probably be eligible for the IL Smart Move program which only requires that you put down 1%.

I work closely with Wintrust Mortgage in getting home buyers approved for this great program which most people (even some mortgage brokers) don't know about. Just let me know if you are interested.
0 votes Thank Flag Link Wed Jul 3, 2013
No. Speak to a lender. They will steer you in the right direction and let you know what your buying power is.
0 votes Thank Flag Link Tue Jul 2, 2013
That would depend on the type of property you are trying to purchase. Some primary residences require as little as 3.5% down (FHA, HomePath or HomeSteps). Most buyers put down between 5% - 10% of the purchase price. Putting down 20% will make your offer more attractive to a seller and save you the PMI.
If the property is investment property, a condo with no active HOA, has a low owner occupancy rate or contains a high percentage (sq / ft) of commercial property attached to the assassination you're probaly going to need a down payment of 20% or higher. Hope this helps.

matt walton / current properties
773.531.9806
0 votes Thank Flag Link Tue Jul 2, 2013
Hola Mauricio,

You do not need 20% to MAKE an offer. You will need either a pre approval letter from your lender or proof of funds is you are purchasing cash. If your offer is accepted you will need to have your earnest money ready. You can purchase a home with as little as 3.5% down, speak with your lender.

No hace falta tener el pronto para hacer una oferta. Lo que si necesitas es una carta de pre aprobacion de su hipotecario o prueba de fondos si estas comprando en efectivo. Si le aceptan su oferta tendras que tener el pronto asegurado. Es posible conseguir un prestamo depositando con un minimo de 3.5% de pronto, consulte con su hipotecario.

Suerte/good luck!
0 votes Thank Flag Link Tue Jul 2, 2013
Get prequalified from a lender. If your credit is good enough you may be able to put down as little as 3.5-5%.
Web Reference: http://www.BJDLOANS.com
0 votes Thank Flag Link Tue Jul 2, 2013
Hi mauricio,

You do not need 20% cash down payment to make an offer or for earnest money if you are going to live there.

There are many lends that can get you loan for as low as 5% down on a conventional loan and 3.5% on an FHA loan. But, you must have good credit. If you do not have good credit, that can be fixed also but will take some time.

I just closed a Property in this area yesterday.

Please contact me for more information if you have any other questions or would like to see additional properties.

Thanks,

Jeffrey Olichwier
Managing broker
Patrick Jeffrey realty
Chicago, IL
312.375.9653
0 votes Thank Flag Link Tue Jul 2, 2013
To make an offer? Many offers are written with no cash at all on the table.

Deposit amounts can accompany the offer, be made upon the acceptance of the offer, or be made within a specified amount of time after the offer acceptance. They can also involve a secondary deposit which follows the initial deposit by a specified period of time with the amount identified in the agreement.

Is it necessary to have 20% of the sale price to make an offer work? This will likely depend on the loan product with which you are involved. There are programs that require more than 20% and some that require less. Your best course of action would likely be to be in touch with a mortgage broker/loan specialist to find out about the best programs and rates for you.

Good luck,

Bill
0 votes Thank Flag Link Tue Jul 2, 2013
No you do not need 20% cash to make an offer. FHA requires 3.5% down. You are welcome to put more down to lower your payment and term of loan. Quite possibly you might be able to lower your interest rate as well.

Most offers ask for proof of funds and or earnest money. I recommend at lease 1% of the total price as earnest money.

Good luck.
0 votes Thank Flag Link Tue Jul 2, 2013
No you can get a loan with 3.5% down FHA now. Talk with your lender about getting approved.
0 votes Thank Flag Link Tue Jul 2, 2013
Not if you qualify for an FHA mortgage. They only require 3.5% down. And there are various points in between 3.5% and 20%, it all depends on what mortgage product you choose.
0 votes Thank Flag Link Tue Jul 2, 2013
No, you don't need 20% and cash will also not be accepted. Depending what type of financing you are getting, the money used has to be sourced and seasoned. If you will not be financing, then you will only need to provide bank statement showing you have the funds available. Typically you put down 1000 unless they require more. E-mail me if you need additional details. Thanks
0 votes Thank Flag Link Tue Jul 2, 2013
No you don't. The earnest money deposit required to make an offer does not have to be this high.
Contact me about the home that you are interested in and I will help you get it without having to put
down this high of an earnest money check. My phone number is 847-987-2198 and my email is
martinsanchez@realtor.com
0 votes Thank Flag Link Tue Jul 2, 2013
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