Home Buying in 06517>Question Details

Robberroo, Home Buyer in 06517

Prequalification if we won't get all the money for our downpayment until January?

Asked by Robberroo, 06517 Thu Sep 2, 2010

Hi. We are looking to buy our first home, and were told we need a pre-qualification letter. My husband's income is 56K. We have no outstanding debts, and very good credit scores. We are looking at a house that's 285K and would be open to a delayed closing in January -- we will be putting down about 60K. Right now, we have 20K for the downpayment; the rest will be a gift from in-laws after the new year. Does this scenario sound doable, mortgage-wise? And will we be able to get a pre-qualification letter if we don't technically have all the downpayment money yet?

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Sonsie Conroy’s answer
If you can qualify for the loan with just the $20,000 you have now, I'd get the letter and start looking. You can always up the down payment when you get the cash from your in-laws. However, a bank will not consider money you don't yet have as part of the qualification process. Good luck to you!
1 vote Thank Flag Link Thu Sep 2, 2010
Consider what your buying power is now with prices being down and mortgage rates at all time lows, vs. what it will be in 6 months. It is likely that prices won't change much in the next 6 months, but the interest rates could.
Consider buying as much house as you can now with the $20k down, then using the gift money to make some improvements or to it apply it to principle, when you get it.

There is a lot of inventory available now, so you should be able to find a home that suits your needs and your wants, that is within you budget. Good Luck on the search.
Web Reference: http://www.danrossre.com
0 votes Thank Flag Link Fri Sep 3, 2010
I'd say take it slow. Traditionally the time from Thanksgiving until Christmas in not exceptionally busy in the Hamden Real Estate market so you might find a real good deal by waiting a few months. For now I'd suggest attending open houses on Sunday afternoon so you can fine tune the neighborhoods you like.
0 votes Thank Flag Link Fri Sep 3, 2010
Hi,
Sonsie is right on. If you can get a loan pre approval then start looking, if not you may have to wait.

Best of luck,
Nancy
0 votes Thank Flag Link Thu Sep 2, 2010
Another option for you.............go forward with the purchase and put the 60K against your principal. You will save thousands in the long run.

Just a thought.

Or.........see what you qualify for currently and get the ball rolling with a lender. Get PRE-APPROVED, not pre-qualified. The lender can always up your purchase power after getting the actual money for the down payment.

Linda
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Thu Sep 2, 2010
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