You Need This Much Money to Buy a House

By
Mortgage and Lending with The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. NMLS #241555
One of the most common questions we are asked is, "How much money do I need in the bank to buy a house?"
 
If you don't own any other properties other than the house you're going to buy, then all you need is enough money to pay for the down payment and the closing costs.  If the seller is going to be paying the closing costs for you, or the lender is going to be paying them for you, then all you need is enough money to cover the down payment. 
 
With FHA loans, the money you need to buy a house can be a gift from a relative, so you don't really need any of your own money.
 
If you own more than one property, then you will need to have reserves in the bank, an investment account, or a retirement account.  The amount of reserves depends on the type of properties you own and the type of loan you are getting for the new purchase.
 
 
Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!
 
 
Make sure you check out our web site:
 
 
And check out all our great tips on our blog:
 


 

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Location:
Colorado
Groups:
Realtors®
Colorado Real Estate
Colorado Realty Bloggers
Tags:
assets
mortgage tips

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
666,458
Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Chris: Thanks for the post. I always like it when I see one of my mortgage brothers featured. I wish you well!

Jul 16, 2012 04:47 AM #7
Rainmaker
130,195
Chris Thomas
The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. - Denver, CO

Kenny - The underwriting software that Fannie Mae and Freddie Mac have determines the riskiness of the loan.  The software analyzes all aspects of the borrower's loan file: income, assets, credit, employment history, housing history, etc.  If Fannie and Freddie's statistics show that the borrower is likely to repay the loan, then it gets approved.  The amount of reserves that a borrower has is only one part of what determines the risk.  It would seem to make sense that the more money someone has in the bank, the less likely they are to go into default, but there is much more to the picture than that.  Many people with no reserves always pay their mortgages, and many people with lots of money in the bank do not.

Jul 16, 2012 05:05 AM #8
Rainer
3,293
Kenny Qiu
Tierra Antigua Realty - Tucson, AZ

Thanks Chris for the detailed explaination.  It makes all sense.  It gives me more insight how a lender approves a loan.  Great information.  Thanks again for sharing.

 

Jul 16, 2012 07:41 AM #9
Rainmaker
790,860
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.
These are great tips for first time buyers.
Jul 16, 2012 08:34 AM #10
Rainmaker
544,206
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Chris, plus, if you're a qualified Veteran, you can get a VA loan for what, $100 down? If you want to purchase a home, it's not as difficult as most people think.

Jul 16, 2012 09:05 AM #11
Rainmaker
1,516,122
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Getting a loan approved is easy.....I have not read those words in a long time. Thanks for letting me know it is still possible.

Jul 16, 2012 10:02 PM #12
Rainer
191,344
Bill Fields
Bill Fields Learning Systems - Treasure Island, FL

Thanks will share with the team.

Jul 16, 2012 10:35 PM #13
Rainmaker
365,389
Woody Edwards
First Choice Realty, Inc - Chesterfield, VA
A Realtor® Who Answers His Phone!

I'm sure every Realto and lender get that question asked at least once a week.  After reading your blog, I think I need another page on my website to touch on this subject.  Thanks!

Jul 16, 2012 11:01 PM #14
Rainmaker
295,433
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

Hi Chris, great breakdown, I wonder if it's too simple and nobody will get it... ;-)

Jul 17, 2012 12:53 AM #15
Rainmaker
1,023,071
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Good information.  People truly do not realize how much they need to plop down to buy a home.

Jul 17, 2012 01:04 AM #16
Rainer
28,373
E. W. Lester
Mort Genius Brands - Fayetteville, GA

Hi Chris,

Coveniently, our forthcoming Transaction Intelligence® tool works backwards from a prospective homebuyer's "constraints" to quickly answer Home Purchase Power and layout a detailed purchase scenario.

The tool also takes another step to analyze each practical rate/cost alternative and conclude the buyer's "financially correct" choice. Thousands in future equity depend on this choice.

Test drive Beta at www.mortgeniusbrands.com/ 

Jul 17, 2012 01:23 AM #17
Ambassador
674,860
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

Not sure that getting a loan is always that easy. Especially nowadays. But you're right in that if you have your ducks lined up it sure makes the process flow a lot smoother.

Jul 17, 2012 01:32 AM #18
Ambassador
4,217,363
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Why is it that you think that a borrower with other properties is a higher risk and thus needs to have higher cash reserves than someone without any other assets?

Jul 17, 2012 04:10 AM #19
Rainmaker
840,932
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Chris or if they are doing USDA (most of our market) they can get it for no money down!

Jul 17, 2012 05:36 AM #20
Rainmaker
130,195
Chris Thomas
The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. - Denver, CO

Bob Crane - The riskiness of a loan is determined by the percentage of past loans with the same attributes that have gone into foreclosure.  People who multiple properties go into foreclosure at a higher rate than people who only own one house.

Jul 17, 2012 06:38 AM #21
Ambassador
4,217,363
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I am glad that my small banker appreciates the excess collateral that I bring to the table.

Jul 17, 2012 06:49 AM #22
Rainer
477,314
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Good information. but more importantly DTI is the biggest challenge I've encountered during the last several years.

Jul 17, 2012 08:56 AM #23
Rainmaker
539,819
Jon Quist
REALTY EXECUTIVES TUCSON ELITE - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Talk to a good LOCAL lender, one who knows your market, and does the paperwork locally. It adds to the process if you are working across several time zones to get answers.

Jul 17, 2012 02:27 PM #24
Rainmaker
1,431,210
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I think some people are completely unaware of how affordable homes really are.  Great post.

Jul 17, 2012 02:31 PM #25
Rainmaker
809,919
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Chris:

You make it sound so easy.  I wish it were that easy, but I suppose if the mortgage broker knows what they are doing the loan process can be easier.

Jul 19, 2012 02:28 AM #26
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
130,195

Chris Thomas

Ask me a question
*
*
*
*
Spam prevention

Additional Information