Home Buying in 11552>Question Details

Cj, Home Buyer in West Hempstead, NY

When should we try to get pre-approved for a mortgage? When we have secured the down payment?? We only have $15,000 right now. Do we really need 20%?

Asked by Cj, West Hempstead, NY Wed Mar 20, 2013

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CJ, if your thinking about purchasing property you should go get pre approved right away either at a bank or mortgage broker the ideal situation is to have 20% as a down payment but you can put as little as 3.5% which would be considered FHA loan but be careful going the FHA way because there some changes coming into play shortly regarding mortgage insurance

THanks Felix Garcia
Robert Defalco Realty
(917)692-7702
2 votes Thank Flag Link Wed Mar 20, 2013
Good afternoon Cj,

First steps:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Get a referral to a good, local, real estate attorney. Call the attorney, retain the attorney so you have her information handy when you make an offer. Having that information at time of offer helps you demonstrate to the Seller how serious you are, and they will consider your offer with more interest.

Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote Thank Flag Link Thu Apr 25, 2013
Cj, it's ALWAYS a good idea to meet face-to-face with a Loan Officer as soon as you're thinking of buying a house. Though it's always a better situation if you do have a 20% down payment, you don't necessarily need 20%, there certainly are plenty of options with down payments as low a 3%.

Even if you do not have all the money together, by meeting with a Loan Officer you'll be able to make sure that everything else is in order. We need to review income documentation and credit along with your assets (savings, checkings, 401k, etc). Maybe there is something on your credit that needs to be addressed, perhaps you'll find out that your income isn't enough to qualify, or maybe it is. The point is that you need to meet with a Loan Officer to go over all things involved in your pre-approving for a mortgage, regardless if you have all the money you need yet or not.

I am always available to meet with you in our Woodbury offices if you need someone. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
1 vote Thank Flag Link Wed Mar 20, 2013
Hi CJ, you don't need 20% down. There are loan programs with down payment requirements ranging from 0% for VA and USDA to 3% for Conventional and 3.5% for FHA. Although a down payment of 20% or more has many benefits including a smaller mortgage payment and no mortgage insurance there are also trade-offs such as less liquidity, which may be important for your other goals. The ideal down payment will vary with each client and loan program. It's best that you meet with a licensed mortgage professional to review your financial and credit profile and discuss your financial goals in order to determine the best mortgage program and down payment.

I have extensive experience helping buyers become successful owners throughout New York with affordable and manageable mortgages. For more information or assistance, I can be reached directly at 917.699.0183.

I value your feedback, please hit the thumbs up if my reply was helpful. All the best.

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
1 vote Thank Flag Link Wed Mar 20, 2013
Hi Cj, depending on the type of loan, you can put down far less than 20%. As Gail said below the first step in looking for a home should be pre-approval, it makes things much clearer as to exactly what you can afford. I can e-mail you recommendations of some excellent lenders that will do a free pre-approval if you'd like, just e-mail me your contact information.
Thank you
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
#1 Listing & Selling Brokerage Office on Long Island
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
1 vote Thank Flag Link Wed Mar 20, 2013
Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore begin by visiting with any licensed loan officer; thereafter you can begin searching for a home. Your loan officer can better advise as to the down payment, no you don't necessarily need 20% down....
1 vote Thank Flag Link Wed Mar 20, 2013
Hello CJ,
I always tell buyers the best place to start is with the bank you currently do business. Also, be sure to ask for a preapproval not a prequalify there is a difference. As for the down payment, your loan officer will be able to go over your options. If you are still in the market for a home feel free to contact me with any questions.

Best of luck.
0 votes Thank Flag Link Sat Feb 28, 2015
How much you need to put down depends on your loan. Don't forget about closing costs!
0 votes Thank Flag Link Thu Apr 25, 2013
Hi CJ, you don't need 20% down. There are loan programs with down payment requirements ranging from 0% for VA and USDA to 3% for Conventional and 3.5% for FHA. Although a down payment of 20% or more has many benefits including a smaller mortgage payment and no mortgage insurance there are also trade-offs such as less liquidity, which may be important for your other goals. The ideal down payment will vary with each client and loan program. It's best that you meet with a licensed mortgage professional to review your financial and credit profile and discuss your financial goals in order to determine the best mortgage program and down payment.

I have extensive experience helping buyers become successful owners throughout New York with affordable and manageable mortgages. For more information or assistance, I can be reached directly at 917.699.0183.

I value your feedback, please hit the thumbs up if my reply was helpful. All the best.

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
0 votes Thank Flag Link Wed Mar 20, 2013
Hi CJ, you don't need 20% down. There are loan programs with down payment requirements ranging from 0% for VA and USDA to 3% for Conventional and 3.5% for FHA. Although a down payment of 20% or more has many benefits including a smaller mortgage payment and no mortgage insurance there are also trade-offs such as less liquidity, which may be important for your other goals. The ideal down payment will vary with each client and loan program. It's best that you meet with a licensed mortgage professional to review your financial and credit profile and discuss your financial goals in order to determine the best mortgage program and down payment.

I have extensive experience helping buyers become successful owners throughout New York with affordable and manageable mortgages. For more information or assistance, I can be reached directly at 917.699.0183.

I value your feedback, please hit the thumbs up if my reply was helpful. All the best.

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
0 votes Thank Flag Link Wed Mar 20, 2013
Cj, it's ALWAYS a good idea to meet face-to-face with a Loan Officer as soon as you're thinking of buying a house. Though it's always a better situation if you do have a 20% down payment, you don't necessarily need 20%, there certainly are plenty of options with down payments as low a 3%.

Even if you do not have all the money together, by meeting with a Loan Officer you'll be able to make sure that everything else is in order. We need to review income documentation and credit along with your assets (savings, checkings, 401k, etc). Maybe there is something on your credit that needs to be addressed, perhaps you'll find out that your income isn't enough to qualify, or maybe it is. The point is that you need to meet with a Loan Officer to go over all things involved in your pre-approving for a mortgage, regardless if you have all the money you need yet or not.

I am always available to meet with you in our Woodbury offices if you need someone. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
0 votes Thank Flag Link Wed Mar 20, 2013
A good idea might be to speak with a mortgage broker or a bank loan officer to so that you have a realistic idea of what price house you will qualify for, what the current mortgage rates are, whether you might qualify for a co-op loan instead of a home loan, what the monthly payments (including taxes or maintenance charges, insurance and other fees) will be. FHA loans are available for people who have substantially less than 20% down payments. A lending officer will have more information regarding those types of loans, whether you will qualify for them and what the monthly fees will be.

Arlynn B. Palmer, ESQ.
Associate Broker
Certified Buyer Representative
Senior Real Estate Specialist
Certified Negotiating Specialist
Certified Marketing Specialist

Daniel Gale Sotheby's International Realty
Phone: 516.410,3594
Office; 516.484.1800 x 252
Email: Arlynn@ArlynnPalmer.com
Website: http://www.ArlynnPalmer.com
0 votes Thank Flag Link Wed Mar 20, 2013
If you are buying 1-4 units using a conventional mortgage you will need 3.5% of the purchase price for the downpayment. You might be able to include the closing cost in the loan if the seller allows it. As well, if you have a 401k, retirement account or some type of savings you might be able to use this as well towards your downpayment.

If one of the buyers is a Veteran you can also receive 100% financing and up to 4% Sellers Concession. In addition there are a few programs that will provide you with downpayment assistance.

It is important that you get pre-approved first before you start viewing homes. If you would like to work with a realtor who understand all the steps in the home buying process contact me anytime at 914-299-0420.

GoodLuck
0 votes Thank Flag Link Wed Mar 20, 2013
Cj,

Pre approval (NOT prequal) should be the very first thing you do...before all else.

Only then will you know what you will realistically be able to handle.

gail@GladstoneGroupRealty.com
0 votes Thank Flag Link Wed Mar 20, 2013
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