Find someone you can trust, and determine a safe monthly outlay that is congruent with your financial objectives.
YOU do not have enough info to tell Cynthia what she can AFFORD.
Cynthia doesn't want your opinion on what she can AFFORD..... She wants an answer to her question.
John, your question to me doesn't make sense.... Stick to real estate and leave the lending questions to lenders.
I promise to answer lending questions and leave the realty questions in your capable hands.
It is not I who is telling Cynthia J what she can afford. It was her lender who told her what she can afford. She said, â€œI have been pre approved for 216,000.â€
I have a question for you, Tomâ€¦
When you issue an approval letter to a home buyer for $216,000 do you also urge that buyer to shop for homes that are more than that amount?
I know you have gotten quite a few responses to your question. At $239K is the builder paying partial of your closing costs? I would strongly recommend that you have a Realtor represent you. Sales counselors represent the builder, not the buyer. An agent can look on the MLS to see how much their inventory homes have sold in that particular community.
To answer your question about how much you have to put down, I'm guessing your going FHA. 3.5% of $216K is $7,560. The difference between $239K and $216K is 23K. So that is a total down pymt of $30,560 + closing costs if the builder is not going to assist you with that.
I hope this answer helps with making your decision. Please feel free to contact me if I can be on any assistance.
Make it a Great Day!
Tamika A. Goree
Broker | Owner
The DFW Property Shop
Cynthia, we can all better answer your question if you can tell us the type of loan for which you are pre-approved. Regardless, you will have to pay the difference between the amount for which you are qualified and the maximum loan amount. For instance, if you are qualified for an FHA loan for $216,000, then the max purchase price would be $223,834 (which leaves you with $215,000 for your loan at 96.5% LTV) and you would have to come up with the difference between that amount and the $239,000. Conventional loans such as Fannie Mae MyCommunity can go up to 97% LTV (with a $222,680 purchase price to keep the loan at $216,000) and you would probably be better off going this direction if you qualify for that program since FHA is going to now have permanent mortgage insurance for the entire life of the loan, It would be well worth the extra $1300 at closing to go Conventional if at all possible since the monthly mortgage insurance on an FHA through the entire life of the loan will add up to thousands of dollars more over the life of the loan.
And I completely agree with Jennifer Duaine that all lenders are not the same. Go with one whom you feel has your best interests at heart and is not so willing to openly tear into the competition on a public forum like this one. But in pointing that out, that probably makes me no better than them...but I felt it had to be said. Good luck with your home purchase!
Or, unless you find another lender able to satisfy more attractive terms.
See, that was easy. :-)
If you are preapproved for $216,000, you cannot afford a $239,000 dollar purchase. Your approval already takes into account a down payment of a certain amount. If you do have more than that amount, you should qualify for more.
Perhaps you should revisit this subject with your lender.
The downpayment amount will depend on the type of loan you are applying for.
There are FHA and Conventional, and VA loans. You will have to put in a down payment plus the difference between the purchase price and loan approval amount.
Please let me know if you want me to send you my lender's contact and he can get you a good faith estimate so you know the closing cost, down payment amount and monthly payment.
There might be several different answers.
One might be $239000-216000 as long as that covers the minimum down payment required by your lender.
We always suggest you use a realtor when purchasing a new home for a lot of different reasons. One is questions like these, but there are a whole host of other reasons you can see at my website.
Also with builder homes, there is a lot more that goes into the sale price. I definitely recommend that you work with a Realtor who understands new construction. Its at no extra cost to you but adds a lot of benefit to you.
I would be glad to help you get that perfect home.
RE/MAX About Dallas
FHA will differ from Conventional and so on. If you agree to a price lower than the $239k your down payment will change. You will most likely have to put in a down payment plus the difference between the purchase price and loan approval amount (not to mention any appraised value).
I would work with an agent and also make sure to shop around for your loan package. And I would discuss your options with your mortgage broker.