Home Buying in 11784>Question Details

Laura_f, Other/Just Looking in 11784

My husband and I are starting to saving for a house. I know we need 20% down.. But for a $300k house, how much should we save on top of the $60k

Asked by Laura_f, 11784 Fri Aug 19, 2011

For example: Closing, lawyer, inspection, etc. I just want to be ready.

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If you haven't spoken with a bank or lending institution, you should do so right away. With these crazy interest rates as low as they are, you may not get a better time to buy. I recently had a young couple who thought along your line of thinking and came to me looking to rent. They now live in their own home in Bohemia and all they put down was 3.5%. To save that kind of money may take years and if you're paying rent now that money's going towards paying your landlord's mortgage and not yours. Please feel free to contact me.
0 votes Thank Flag Link Sat Oct 13, 2012
Depends on you credit and your job you can put 3.5% down and have the seller help with the closing costs. So you can buy a home around 300k with only 12k. Closing costs depend on the taxes.
0 votes Thank Flag Link Tue Oct 18, 2011
If you have the minimum credit score needed for FHA and minimum lines of credit, you will only need the FHA minimum downpayment 3.5%. If putting 20% down will save you the monthly cost of mortgage insurance. Lenders may sometimes require you to have reserve funds in the bank after the purchase of your home, so make sure you follow the conditions on the credit pre-approval letter. Credit scores are also connected to government grants for downpayment and mortgage insurance may get waived, because higher the credit score lower is risk to the bank. Educate yourself on how your credit report can benefit from the Fair Credit Reporting Act of 1971 or check my video on the web reference!
0 votes Thank Flag Link Mon Aug 22, 2011
Laura_f,
You don't need to put 20% on a home. You can go FHA that only requires 3.5%. FHA is currently at the same rate as conventional mortgage, but you do have to pay MI of 1% (can be rolled into mortgage) upfront and 1.15% every month. The seller can pay up to 6% of the price towards non-recurring closing cost. That means you will need at least 1 years's real estate tax to set up the escrow and paying back the seller prepaid tax. You would also need 14 months homeowners' insurance (paid policy for 1 year and 2 months for escrow). Add to this is prepaid interest. Your mortgage officer can give you a breakdown of all the closing costs.
Your lawyer should be around $1,200, home inspection costs $450.
0 votes Thank Flag Link Sat Aug 20, 2011
You don't always need 20% down. With rates hitting a new low today, it could behoove you to put less down and buy earlier. A lending professional can give you a very good estimate of closing costs.

Tom Brady
http://www.BradyFamilyRealty.com
0 votes Thank Flag Link Fri Aug 19, 2011
Laura_f,

The answers below appear to be specific for your geographic area and the closing customs there. As you begin the pre-approval process for your financing, your loan officer will be able to give you a very good estimate of what charges will be related to the financing, as well as the total settlement. I created a short video about understanding and comparing closing costs and you can find the link below.

Best of luck,

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Fri Aug 19, 2011
Factor in your closing costs, which is approx 5% of the purchase price as well as 2-3 months of your current rental expenses in the event you don't close when anticipated.

Better to be prepared as much as you can be as there is always going to be a few surprises:)

Good luck!
0 votes Thank Flag Link Fri Aug 19, 2011
Be ready with 4-5% of the sales price and leave the closing table with $ in your pocket and a smile on your face.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Fri Aug 19, 2011
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