Simple Question about being pre-approved for a mortgage | TigerDroppings.com
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LordSnow
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Round Rock (Finally)
Member since May 2011
3480 posts

Simple Question about being pre-approved for a mortgage

So I'm moving to just outside Austin. We've been pre-approved for 325k ( They wouldnt take the wife's income into account for some reason about her not having a Job in Texas? ) Now we plan on putting 50k or so down on the house. Couldnt we be looking @ 375k houses? ( I dont want a 375K house, but maybe just a touch over 325K )
Thanks


threeputt
Notre Dame Fan
God's Country
Member since Sep 2008
21998 posts

re: Simple Question about being pre-approved for a mortgage
Most places require you to put down 20% of the loan value. That means if you have 50k, you are looking at a house worth 250k max.
This post was edited on 1/6 at 7:18 am


LordSnow
LSU Fan
Round Rock (Finally)
Member since May 2011
3480 posts

re: Simple Question about being pre-approved for a mortgage
quote:

Most places require you to put down 20%


This will be my 3rd house and I've never put down 20%


threeputt
Notre Dame Fan
God's Country
Member since Sep 2008
21998 posts

re: Simple Question about being pre-approved for a mortgage
When was the last time you took out a mortgage? Things have changed recently.

I have just recently seen a guy with over a million dollars cash in the bank get turned down on a mortgage for 900k house where he was only looking to finance 450k. Turned down due to his lack of credit. I don't think that would have happened ten years ago.


LordSnow
LSU Fan
Round Rock (Finally)
Member since May 2011
3480 posts

re: Simple Question about being pre-approved for a mortgage
quote:

When was the last time you took out a mortgage?


'08


Lsut81
USA Fan
Member since Jun 2005
66076 posts

re: Simple Question about being pre-approved for a mortgage
quote:

Now we plan on putting 50k or so down on the house. Couldnt we be looking @ 375k houses? ( I dont want a 375K house, but maybe just a touch over 325K )


As a rough estimate, you could finance 325k, so yes, if you are putting down 50k, you could look at something more expensive. But the thing you have to remember is that 325k is equal to a monthly note, which doesn't include escrows for taxes and insurance.



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threeputt
Notre Dame Fan
God's Country
Member since Sep 2008
21998 posts

re: Simple Question about being pre-approved for a mortgage
Yeah, there has been lot more govt regulation since then. I am sure somebody out there will take less than 20% percent down but you may gave to look pretty hard to find them.

I am probably not the best person to be giving you advice so I will leave this tread for somebody who is in the business to answer but it has been my experience from the last few home purchases (one primary and two rentals) that 20% is pretty much required by most lenders.
This post was edited on 1/6 at 7:48 am


Lsut81
USA Fan
Member since Jun 2005
66076 posts

re: Simple Question about being pre-approved for a mortgage
quote:

I am probably not the best person to be giving you advice so I will leave this tread for somebody who is in the business to answer but it has been my experience from the last few home purchases (one primary and two rentals) that 20% is pretty much required by most lenders.


Yeah me either, I was just trying to give some info since I purchased a little over a year ago and have since refinanced.

Fwiw, I didn't have to put 20% down initially, but that may have been because I bought a foreclosed home
This post was edited on 1/6 at 8:20 am


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MikeBRLA
LSU Fan
Baton Rouge
Member since Jun 2005
9768 posts
Online

re: Simple Question about being pre-approved for a mortgage
quote:

Most places require you to put down 20% of the loan value.


I think you meant to say 20% of the value of the home, not "loan value".


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kaaj24
LSU Fan
Dallazz
Member since Jan 2010
270 posts

re: Simple Question about being pre-approved for a mortgage
Yes, if you're willing to put down money you could buy a more expensive house.

If you have great credit you can put down 5%. Ask you're lender for your specific situation.


Lsut81
USA Fan
Member since Jun 2005
66076 posts

re: Simple Question about being pre-approved for a mortgage
quote:

If you have great credit you can put down 5%. Ask you're lender for your specific situation.



Shit, I thought with an FHA and good credit, you only had to put down 3%? Is that not the case anymore?

It was an option when I purchased 1.5yrs ago


JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4903 posts

re: Simple Question about being pre-approved for a mortgage
If you got pre approved for $325k, then you should be good putting that much down and financing up to $325k. FHA requires only 3.5% down, but they have loan limits depending on the area. Conventional will go as low as 5% down, depending on your credit. You will just have to pay PMI if you put down less than 20%. I believe if you were buying rental property, they require 20% down. Maybe that's where some of the confusion from other people is coming from.


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ds1tiger
LSU Fan
Closer than you think
Member since Apr 2006
282 posts

re: Simple Question about being pre-approved for a mortgage
quote:

Shit, I thought with an FHA and good credit, you only had to put down 3%? Is that not the case anymore?


FHA is still 3.5% minimum. 5% is conventional.


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Queen
LSU Fan
383 miles from Death Valley
Member since Nov 2009
2782 posts

re: Simple Question about being pre-approved for a mortgage
quote:

This will be my 3rd house and I've never put down 20%



Fiance' and I got pre-approved last year and they said if we didn't put down 20% of the home value up front we would be required to buy the mortgage insurance. So we're saving until we don't have to do that.


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