Home Buying in 08520>Question Details

Strange1, Home Buyer in Bergen County, NJ

I have FHA pre-approval for a home in NJ. I don't yet have all the fund for 3.5% down payment, but will by closing. Can I still make an offer?

Asked by Strange1, Bergen County, NJ Wed Aug 4, 2010

We are expecting relocation money from my husband's employer to help us with our down payment, but that is being paid out incrementally over a couple of months (weird, I know). While we have enough for an earnest payment, we currently don't have the full 3.5%. We expect to have more than enough by a closing date that we would request as a stipulation of the contract. I'm worried that not having the funds up front will hinder our final mortgage approval. Can anyone offer any input or advice on when we MUST have the complete down payment in our bank account - or if there's anything we can do to help our case? We've yet to make an offer - but we need to make a move quickly because of the job relocation.

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I would recommend speaking with a loan officer, your lender or Jeff Belonger will be able to guide you in the right direction. He's in New Jersey too. You can find him here on Trulia or http://activerain.com/jeffmortgageman.

With that being said, lets say the seller accepts the earnest deposit and agrees to wait for the balance of your down payment until closing, what if you don't have the money in time for closing? Is the seller willing to take the risk that you'll have it by closing? Or will they take the risk and take their house off the market based simply on an earnest deposit? For my sellers, I always negotiate a higher second payment which is due 10 days after attorney review to prove true motivation.

Again, try contacting Jeff Belonger and tell him your situation. He'll guide you in the right direction. I honestly think this is a question best answered by a loan officer/mortgage rep.

Good luck.

Gina Chirico, Sales Associate
Lattimer Realty
973=715-1158 cell
973-575-6353 ext 17
0 votes Thank Flag Link Fri Aug 6, 2010
do you have a relative that can gift you the 3.5% or do you have a 401k or any retirement fund you can borrow the money from and replace when employer makes payment? You must show a source of funds, so if you can't get it up front,you may not get final approval until all sources of monies are disclosed and verfified.Are you or your husband a veteran? No 3.5% needed then,just FYI. You can still make offer,but you won'y be able to close
0 votes Thank Flag Link Fri Aug 6, 2010
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