How do I put on a house or condo?

Deal Score0

Ok, I’ll save my credit and money in the construction process. My goal is to buy a house or condo for 80K-150K max. with my credit score over 710, how can I put a lot of money to actually buy my property? (I would be the first time buyer and I’m not sure how it works) Thanks ….

  1. Reply
    May 13, 2013 at 7:50 pm

    With your good credit, you can prolly get it with 5% down

  2. Reply
    May 13, 2013 at 8:42 pm

    The amount you put down will affect your interest rate and whether or not you’ll pay mortgage insurance (pmi). If you can afford to put 20% down, you will not have to pay pmi. If you can’t there are a number of loans out there, that if you qualify, will not require any down payment whatsoever. Ask several mortgage people about their loan programs and options, and educate yourself so you get the best deal for your set of circumstances. Your priorities may be much different than the lender’s.

  3. Reply
    May 13, 2013 at 9:07 pm

    20% down is ideal…which would be 16,000 to 30,000 depending on what price you settle on. Still, you do have a high credit score, so lenders will likely be willing to work with you on less money down. Remember however that, most banks require you to pay mortgage insurance on anything less than 20% down, which comes out to about $ 45-60 monthly on every 100,000 financed. Also, you will likely get a lower rate the more than you are able to put down. Likewise, putting more down can save you a lot in the long run. Still, I have never put more than 10% and so far that has worked for me. I am not sure how people ever put more than 5-10% down outside of selling their previous house and walking away with a lot of money to use on the next one. Saving that much is difficult and normally prices increase faster than you can save. Currently, the market is in a down-trend, and none of us know how long it will take to ride this out. I suggest going with enough down to get a good rate and still not wipe out your savings. You will find there are many unexpected expenses that come up after you buy that you might not have thought of, and using all of your savings on the down payment will leave little for you to work with…best wishes.

  4. Reply
    May 13, 2013 at 10:01 pm

    Consult a mortgage lender for exact specifics, but you can get into a home for about 5% down. If you don’t want to have to pay private mortgage insurance, then you have to have 20%. Anything over 700 is considered excellent for credit, so you shouldn’t have a problem qualifying for the loan as long as your income supports it.

  5. Reply
    May 13, 2013 at 10:23 pm

    Banks are likely going to require more than 10% so i would be prepared for that …

  6. Reply
    Freak Boy
    May 13, 2013 at 10:23 pm

    a 710 credit score is good. Since you are a first time buyer, put 20% down if you are able. This will eliminate Private Mortgage Insurance. If you can afford to put more down, your payments will be lower. Also, here is a trick that most people do not know: When making your mortgage payments, pay next month’s PRINCIPAL along with this month’s payment. What this effectively does is eliminate next month’s interest. If you keep doing this every month, your 30 year mortgage will be reduced to 20 years or so, maybe even shorter.

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