Property Q&A in Duncanville>Question Details

Susie Medina, Home Buyer in Dallas, TX

what do you need to buy house and what is down payment.?

Asked by Susie Medina, Dallas, TX Tue Dec 30, 2008

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This question is about this property: http://www.trulia.com/property/1072090061-722-Fairwood-Pl-Du…

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This particular house is listed with the notation "TLC" or Tender Loving Care. Realtors use this to mean that the house needs updates, upgrades or repairs. Not having seen the house, it is difficult to judge how much those will cost. TLC means you will need cash to spend on those items. It could be carpet, paint, foundation, or something else -- you would have to visit the property and get a seller's disclosure to know.

A rule of thumb is that you will need at least $2,000 plus 3.5% of the price for down payment. In this case around $3,500 minimum plus the TLC items is needed in the bank.

Another rule of thumb is that to qualify for a loan of 96.5% of the price you will need to make payment of about $9 per $1,000 of mortgage, or in this case about $9 x 41= $369 a month. That amount cannot exceed about 1/3 of your gross monthly income. So, you'll need to earn about $1,125 a month and not have other payments, like a car etc that exceed $125 a month. These are not intended to be a quotation, but rather guidelines to help you understand roughly what is required.

If your credit score is good, which you will know when you ask a loan officer to qualify you, you could buy a home like this in a few weeks' time. You should also discuss whether this is your first home or not, because some programs are available to assist you in purchasing your first home. If you have some credit report problems, the loan officer can explain what to do abou fixing your credit to qualify. Also, he can explain about 203(k) loans that include an extra amount above the sales price for doing repairs.

Once, you're pre-qualified, find a Realtor to help you locate a house where you want at the price you can afford according to your pre-qualification.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Sun Jan 4, 2009
Susie, You will first need to get pre-qualified for a loan. You will need to speak with a Mortgage company to see how much you can qualify for. You can call your bank or I can give you a few recommendations.
The Down payments vary depending on what loan you get, that is why you will need to contact a loan officer.
Then you look for homes that are in your qualification and the amount you feel comfortable for.
Feel free to contact me you can click on our photo and it will give you our contact info. You can contact me directly.
Regards,
Kathleen
0 votes Thank Flag Link Tue Dec 30, 2008
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