Question removed

Asked by Alex Gom, Maryland Mon Feb 4, 2013

This question was removed by its author.

Answers

10
, ,
Mon Feb 4, 2013
Good afternoon Alex Gom,

Based on your example, the numbers work like this:

Purchase Price: $300,000
Down Payment from YOU: $60,000
Mortgage Loan needed to complete your purchase price of $300,000: $240,000 ($300,000 minus your $60,000)

You should definitely get yourself in front of a Local Mortgage Banker now to get thoroughly Prequalified, even if you're not planning to shop until later in the year. You want to be certain now that you are ready, steady, GO for a mortgage loan and you don't have to take any actions to correct problems that could prevent a successful loan approval (750 credit score and 20% Down payment does NOT guarantee a loan approval; too many variables in this difficult lending environment).

Trevor Curran
NMLS #40140

If you thought my answer was helpful, please give me a "Thumbs Up." Thanks!
0 votes
Amy Sanders, , Severn, MD
Mon Feb 4, 2013
Hi Alex,

You can start looking anytime to get a feel for what you want but generally within 60 - 75 days of your desired move date will allow you to see the most inventory. You can get pre-qualified anytime but don't need to go through to full loan approval until it is time to buy. It is good to have this information up front so you can be sure you are searching in the right price range. A good mortgage consultant can also help you calculate payments by area to give yoy a feel for monthly mortgage payments. Best of luck!
0 votes
Akil Walker, Agent, Upper Marlboro, MD
Mon Feb 4, 2013
Hi Alex,

Loan approval letters are normally valid for 90 days. Based on your informatoin it sounds like you are looking for a conventional loan. I would suggest you start making contacth with loan officers now and begin a primarily housing search, unless you have a specific property that you have in mind.

Good luck
0 votes
Phyllis Glea…, Agent, Columbia, MD
Mon Feb 4, 2013
Hi Alex, sometimes it takes a while for you to find "just the right" property. May I suggest that you contact a lender to get a pre-approval before you start shopping for a home. The pre-approval will let you know how much home you can buy, based on your income, debts, closing costs, taxes, insurance and your downpayment.

When your loan amount is calculated, it is based on the sales amount minus your downpayment. So if you are buying a $300K home and put down $50K, your loan amount would be $250K. Please take closing costs you have to pay into consideration when you are deciding how much you want to put down on the property.
0 votes
Deniz Cribbs, Agent, Gambrills, MD
Mon Feb 4, 2013
Hello Alex ! Based on the 300k sales price and 20 % down, your loan would be on $240,000, with 60k having gone towards the purchase will end up going to the seller..You will need additional money for closing costs unless some portion of that is paid by the seller...Your credit score is good..
If that is the time you want to move, shopping now is a waste of time. Rates will have gone up by then most likely as they are trending up now..We are not at our low point any longer, and rates have gone up and I believe will continue going up as the stock market rebounds like it has..and prices are going up too..and will continue to go up as the housing market heats up this spring. If you want to beat those 2 trends and get more home for your $, you should think to buy sooner than later. I would be happy to help you with your home purchase and can suggest a good loan officer for you to talk to who can give you good advice on whether you should even be putting down that much $..You don't have to put down 20% to buy a home and it may be wiser for you to put down less...A loan officer can help you determine what would be in your best interests. Give me a call or email if you would like my further assistance. 410-703-4585 ..deniz.cribbs@cbmove.com
0 votes
The Roskelly…, Agent, Gambrills, MD
Mon Feb 4, 2013
Your calculations were correct. A house priced at $300k with a $60 downpayment would have you financing just the balance of $240k. A $250k home with $50k downpayment would have you financing just $200k.
0 votes
Richard Bour…, , Columbia, MD
Mon Feb 4, 2013
Hi Alex, you can borrow up to 97% of the purchase price of the home, but as I think you know, borrowing just 80% allows you to avoid private mortgage insurance. If you put $50,000 down on a $300,000 purchase, you will be at 83% loan-to-value, which requires that you have mortgage insurance, but a minimal amount, and there are a few different ways it can be paid (up-front single premium, monthly premium, or lender-paid).

I'll be happy to discuss your options with you. Feel free to call me at 410-960-3272 or email me at rbourdeaux@waterstonemortgage.com. It is best that you start the mortgage process as early as possible so that we can maximize your credit scores and ensure that you're absolutely ready when the time comes to write a contract.
0 votes
Tracey Simms, Agent, Bel Air, MD
Mon Feb 4, 2013
If you are purchasing a $300,000 home, the down payment is $60,000 and the loan amount is $240,000.
You should get prequalified for a loan before you start house shopping.

There will also be closing costs which include loan origination, transfer tax, property tax etc..ask your lender for a good faith estimate so that you have a solid idea of what your total costs will be.

Sometimes all or a portion of closing costs being paid by the sellers can be negotiated into the contract.
0 votes
The Roskelly…, Agent, Gambrills, MD
Mon Feb 4, 2013
Hi Alex,

The downpayment reduces your loan amount and therefore your monthly mortgage payment. With a 20% downpayment you can also avoid any mortgage insurance premiums (MIP) which might otherwise be due.


It is never too early to pre-qualify for the mortgage loan. Sounds like you will be just fine. We have great lenders that can assist you in just a few minutes on the phone.

For a timeline for purchasing you can start anywere for 60 - 90 days before your desired move-in date.

Visit us on line to view all available homes and let us know if we can help you find your new home.
0 votes
Alex Gom, Home Buyer, Maryland
Mon Feb 4, 2013
The posting deleted all the plus signs. So i meant to say 250 plus 50 equals 300k and i have a credit score 750 plus.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Severn Zip Codes

Email me when…

Learn more