Johnson1, Home Buyer in University Commons,...

We will be using our VA Home Loan, looking to purchase within 6-12 mo from now. What do banks look for,what is a safe amount to save?

Asked by Johnson1, University Commons, San Marcos, CA Sat Apr 14, 2012

areas that are near carrillo elementary school, university commons,el fuerte street, poinsettia lane, rancho carrillo, etc. homes near the elementary school.

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Gil Soto, Agent, Carlsbad, CA
Mon Apr 16, 2012
The purchase price and area where you plan to buy will determine whether or not you have to put "any money down". Debt to income ratio is important but if you have enough "compensating factors and a high "net residual" you can exceed debt to ratio standards. The seller can cover up to 4% of your closing costs (even pay off a debt to help you qualify) which more often than not will allow you to be reimbursed for appraisal and home inspection costs at close of escrow. The more you have in savings will give you more flexibility in how you structure your purchase. Closing costs can be up to 2%-3% of purchase price depending on the month and date you close. A lender would like to see 2 months of principal, interest, taxes and homeowners insurance in savings after closing, in the bank. The most important thing to do now is to get together with a VA lender to know what you would qualify for now and what steps you might have to take to increase your borrowing power in the next 6-12 months. I would be happy to meet with you for a free consultation and run a free credit report so that we know what your credit score is now and what we could do to increase it, if necessary.

Best Regards,

Gil Soto
Loan Officer/Realtor
San Diego Financial
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Jessica Bott…, , San Marcos, CA
Sat Apr 14, 2012
If you are using your VA loan then you will not need to "put any money down" however, you will still have closing costs and the deposit which you can get back if your agent structures your offer properly. This deposit into escrow is typically 1% of the purchase price. Your mortgage lender will look at your income vs. debt along with your credit history. Currently for VA you need to have a credit score above 645 to qualify. The closing costs can vary with the time of the year you purchase (affecting how many months of property taxes will be impounded) and also depending on the sales price of the home. The good news is that with using your VA loan the seller has to cover certain items for your closing costs and often times we are able to get the seller to cover most, if not all of your closing costs. You will need pay for a home inspection (est $400) and appraisal ($450 often times the lender may reimburse you at the close of escrow).

Another great benefit to you is if you register at you are eligible to qualify for additional savings and rebates from the Realtor and Lender and also the Friends of Heroes program they offer. This can be additional savings of thousands of dollars, all depending on the sales price of the home.

Please let me know if you have any other questions 760-420-2625 - Jessica Bottrell
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