Home Buying in Dallas>Question Details

Cynthia J., Home Buyer in Dallas, TX

I have been pre approved for 216,000. I have found a new home with a builder for 239,000. How much will I have to put down?

Asked by Cynthia J., Dallas, TX Thu Mar 28, 2013

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Tamika Goree’s answer
Good Morning Cynthia,

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
Cell: 972.697.1178
Fax: 972.665.7148
Email: tamika.goree21@gmail.com
0 votes Thank Flag Link Thu Apr 4, 2013
What the buyer can 'afford' is different than what the buyer can qualify for.....

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.
3 votes Thank Flag Link Thu Mar 28, 2013
I'm with you Tom. As I replied to John, my pre-approval was for $250K, but I purchased a $300K home. It comes down to the type of loan and the buyer's finances. We don't know what this buyer has in savings, their income, if money will be gifted, etc.
Flag Tue Apr 2, 2013
Wrong, Tom Burris…

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, “I have been pre approved for 216,000.”

I have a question for you, Tom…

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?
1 vote Thank Flag Link Thu Mar 28, 2013
I'm sorry to jump into this debate, but I was approved for a $250K loan and purchased a home for $300K. My loan was a traditional 30 year, fixed rate mortgage with 20% down. I covered my own closing costs as well, rather than roll them into my loan. Without more information from the buyer, it would be impossible to answer this question.
Flag Tue Apr 2, 2013
FHA loan of $216,000 with 3.5 percent down how much will mortgage insurance be per month?
0 votes Thank Flag Link Fri Jan 30, 2015
On a 216,000 loan with 3.5 percent down how much is the mortage insurance
0 votes Thank Flag Link Fri Jan 30, 2015
On a FHA loan of $216,000 with 3.5 percent down, how much will the mortage payment be
Flag Fri Jan 30, 2015
The difference, plus down payment. Talk with your lender.
0 votes Thank Flag Link Wed Apr 3, 2013
Wow...talk about some catty answers below. Sheesh! Sheath your claws, people! The woman wants to know how much she has to put down to get the house. You guys are not taking into account that she may have a tidy sum of cash put back somewhere and is able to PAY for the difference in that $216,000 and that $239,000. All Cynthia wanted to know was how much she would have to put down.
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!
0 votes Thank Flag Link Fri Mar 29, 2013
One more thing Cynthia, not all lenders are the same, nor are their ethics or availability to attractive terms. Just like not all real estate agents are the same. Hopefully, 2007 taught us that.

Find someone you can trust, and determine a safe monthly outlay that is congruent with your financial objectives.

JD.
0 votes Thank Flag Link Fri Mar 29, 2013
$23,000.00 plus closing costs. Unless you have a real estate agent who was able to negotiate the seller paying or contributing to closing costs.

Or, unless you find another lender able to satisfy more attractive terms.

See, that was easy. :-)
0 votes Thank Flag Link Fri Mar 29, 2013
John Juarez,
You can tell this person what they can and cannot afford?
Really?
From this little info?
0 votes Thank Flag Link Thu Mar 28, 2013
Why am I the only one that sees a basic problem?

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.
0 votes Thank Flag Link Thu Mar 28, 2013
Hi Cynthia,


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.

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Thu Mar 28, 2013
Call me and we can walk you through this....

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.
http://teamlynn.yourkwagent.com/atj/user/AdditionalGetAction…
0 votes Thank Flag Link Thu Mar 28, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
It depends on the loan. Conventional u typically put dwn 20% and for FHA 3.5%. VA loans are known to cover most or if not all of the agreed sales price. Thats the generic answer to your question.
0 votes Thank Flag Link Thu Mar 28, 2013
Cynthia - you'll have to put the difference down plus the regular downpayment amount. Are you working with a Realtor? If not, I would encourage you to do so. Having an agent doesn't cost you anything but not having one can cost you a bundle! We work with builders regularly and know how to negotiate the best possible terms for you. Please let me know if I can be of assistance.

Andrea Brooks
469-450-1326
Keller Williams
0 votes Thank Flag Link Thu Mar 28, 2013
You put down the difference PLUS down payment requirements.

Can the lender up the approval?
0 votes Thank Flag Link Thu Mar 28, 2013
Typically with conventional loans you put 20% down, though your lender may be able to give you other options. FHA is 3.5% down.

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.
Jennifer Blackwood
RE/MAX About Dallas
214-818-4126
0 votes Thank Flag Link Thu Mar 28, 2013
You also have the option to ask the sellers to pay a portion of the closing costs and a home warranty. Also, see if you qualify for downpayment assistance through the Texas bond program at http://www.tsahc.org and you can get 5% toward downpayment and closing costs in the form of a grant that you do not have to pay back. Please call me if you are interested in this program 972-854-3270.
0 votes Thank Flag Link Thu Mar 28, 2013
Home contract price - loan amt + % loan down + closing costs = how much you need.
0 votes Thank Flag Link Thu Mar 28, 2013
Depends what type of loan you are applying for, if the builder has any requirements and what purchase price you end up agreeing to.

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.

Good luck!
0 votes Thank Flag Link Thu Mar 28, 2013
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