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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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**UPDATED**Is It True...Re: Getting a Mortgage
That in recent months (with the economy falling apart) you cannot get approved for a mortgage if you have no $ in your bank account? Another words, if you make lets say $130,000 a year, have good credit but have no savings, live paycheck to paycheck then the bank may not give you a mortgage? Someone mentioned this to me.
Plese advise.
Thank you.
UPDATE:
Thank you all for you opinions and suggestions, I GREATLY appreciate them!!! I will take what you all have said into consideration and then make the decision thats BEST for my husband and I.
Keri~
Message edited 8/15/2011 6:05:27 AM.
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Posted 8/13/11 6:41 PM  |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Is It True...Re: Getting a Mortgage
How would you put down a down payment if you had no savings?
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| Posted 8/13/11 7:02 PM |
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lovemyfamily88
LIF Adolescent
Member since 5/10 641 total posts
Name:
????
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Re: Is It True...Re: Getting a Mortgage
How can you buy a house with no money in the bank? Down payment, closing costs-----how would you pay for that?
It used to be that anyone could get a morgage with no money down. That was the reason for the housing crisis.
My opinion is anyone without savings should not be approved for a morgage. What happens if you lose your job???
I would assume that someone, no matter how much money they make would not be approved for a morgage without savings.
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| Posted 8/13/11 7:31 PM |
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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by LSP2005
How would you put down a down payment if you had no savings?
The downpayment, closing costs, etc etc would come from a gracious family member My DH and I have great jobs and besides a zillion bills(we have NO credit card debt) but we are spenders so our bank account has next to nothing in it right now.
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| Posted 8/13/11 7:48 PM |
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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by lovemyfamily88
How can you buy a house with no money in the bank? Down payment, closing costs-----how would you pay for that?
It used to be that anyone could get a morgage with no money down. That was the reason for the housing crisis.
My opinion is anyone without savings should not be approved for a morgage. What happens if you lose your job???
I would assume that someone, no matter how much money they make would not be approved for a morgage without savings.
*Please see my reply to other poster since it answers hour questions.
Thanks
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| Posted 8/13/11 7:50 PM |
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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by BabyLove08
Posted by lovemyfamily88
How can you buy a house with no money in the bank? Down payment, closing costs-----how would you pay for that?
It used to be that anyone could get a morgage with no money down. That was the reason for the housing crisis.
My opinion is anyone without savings should not be approved for a morgage. What happens if you lose your job???
I would assume that someone, no matter how much money they make would not be approved for a morgage without savings.
*Please see my reply to other poster since it answers hour questions.
Thanks
OPPS...I meant to write YOUR, not HOUR--damn iPhone keyboard:)
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| Posted 8/13/11 7:51 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Is It True...Re: Getting a Mortgage
Posted by BabyLove08
Posted by LSP2005
How would you put down a down payment if you had no savings?
The downpayment, closing costs, etc etc would come from a gracious family member My DH and I have great jobs and besides a zillion bills(we have NO credit card debt) but we are spenders so our bank account has next to nothing in it right now.
Before you would qualify for the mortgage the money would need to be in your account or they would need to fill out forms to say that they are giving you X dollars. Honestly though I would figure out how to save some money - you will have expenses that are unexpected when you have a home. What happens if one or both of you lost a job? It's nice to have income but it's nicer to have savings. What will you do when you want to retire?
ETA: They also want to see how long you have been with an employer and some even have asked will your employer give you a letter saying that you will have a job for the next few years. I would do some automatic saving in an account you don't touch to give yourselves a years worth of savings.
Message edited 8/13/2011 8:03:09 PM.
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| Posted 8/13/11 7:59 PM |
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Momma2Be
Mommy of an angel
Member since 10/09 5911 total posts
Name:
Dina
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Re: Is It True...Re: Getting a Mortgage
The PP is correct about you having to fill out documentation that proves that a family member gave you the money as a gift.
In addition to the money DH and I had in savings for a down payment, closing costs, etc. we also had to have about 7 months worth of mortgage payments in reserve.
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| Posted 8/13/11 8:23 PM |
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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by LSP2005
Posted by BabyLove08
Posted by LSP2005
How would you put down a down payment if you had no savings?
The downpayment, closing costs, etc etc would come from a gracious family member My DH and I have great jobs and besides a zillion bills(we have NO credit card debt) but we are spenders so our bank account has next to nothing in it right now.
Before you would qualify for the mortgage the money would need to be in your account or they would need to fill out forms to say that they are giving you X dollars. Honestly though I would figure out how to save some money - you will have expenses that are unexpected when you have a home. What happens if one or both of you lost a job? It's nice to have income but it's nicer to have savings. What will you do when you want to retire?
Your input is very much appreciated. Thank you.
ETA: They also want to see how long you have been with an employer and some even have asked will your employer give you a letter saying that you will have a job for the next few years. I would do some automatic saving in an account you don't touch to give yourselves a years worth of savings.
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| Posted 8/13/11 8:23 PM |
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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by Momma2Be
The PP is correct about you having to fill out documentation that proves that a family member gave you the money as a gift.
In addition to the money DH and I had in savings for a down payment, closing costs, etc. we also had to have about 7 months worth of mortgage payments in reserve.
Thank you. I know this may sound ridiculous but in Re: to you needing 7 months of payments in reserve, can someone lend you the $ to have in your acct at the time they are looking for it?
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| Posted 8/13/11 8:29 PM |
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ml110
LIF Adult
Member since 1/06 5435 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
you DEFINITELY want to have money in the bank before you buy a home. Even if down payment and mortgage costs are being covered.... owning a house has SOOO many things pop up. you'll need enough furniture for the house, chances are there will be remodeling or at least minor redecorating you'll want to do- that all costs money.
plus, with a house, you're responsible for paying to fix things that break, etc.... a unexpected broken water heater or furnace could cost you thousands of dollars. also, a a lot of your bills will be more expensive with a house, too (electric, water, gas or oil...)
owning a home is a great thing-- but definitely not something you want to do until you build up your savings on your own...
Message edited 8/13/2011 8:33:58 PM.
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| Posted 8/13/11 8:30 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Yes, we had to show bank records proving we had enough for closing costs plus some...
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| Posted 8/13/11 8:36 PM |
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BabyLove08
Love her!
Member since 2/08 3673 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by ml110
you DEFINITELY want to have money in the bank before you buy a home. Even if down payment and mortgage costs are being covered.... owning a house has SOOO many things pop up. you'll need enough furniture for the house, chances are there will be remodeling or at least minor redecorating you'll want to do- that all costs money.
plus, with a house, you're responsible for paying to fix things that break, etc.... a unexpected broken water heater or furnace could cost you thousands of dollars. also, a a lot of your bills will be more expensive with a house, too (electric, water, gas or oil...)
owning a home is a great thing-- but definitely not something you want to do until you build up your savings on your own...
Thanks. This is a condo and we already have a beautiful apartment with all of our furniture. We are just so sick of paying almost $2000 to rent. My Mom made us an offer to help with a down payment.
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| Posted 8/13/11 8:37 PM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: Is It True...Re: Getting a Mortgage
we only had 10K left after closing. They cleared out 5K extra at closing that was completely unexpected so left us with 5K. They gave us a good faith estimate but they forgot we had to pay all the taxes the day of closing for the year. Totally killed us.
When we close we had booked jobs already to start so we did them so that gave us zero savings, then emergencies happened we charged and we are just almost paid off on cc but we have $300 in savings since we are paying cash for everything. So lesson learned have the MOST amount of money possibly walking into closing in the bank because you never know.
My uncle just closed and thought he just had to paint and order furniture. He got in and realized all the windows were sealed shut so he had to order new windows, he found out the AC wasn't running at !00% he had to fix that, etc. stuff creeps up.
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| Posted 8/13/11 8:39 PM |
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Momma2Be
Mommy of an angel
Member since 10/09 5911 total posts
Name:
Dina
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Re: Is It True...Re: Getting a Mortgage
Posted by BabyLove08
Posted by Momma2Be
The PP is correct about you having to fill out documentation that proves that a family member gave you the money as a gift.
In addition to the money DH and I had in savings for a down payment, closing costs, etc. we also had to have about 7 months worth of mortgage payments in reserve.
Thank you. I know this may sound ridiculous but in Re: to you needing 7 months of payments in reserve, can someone lend you the $ to have in your acct at the time they are looking for it?
I believe so, I think everything would have to be documented....the person "gifting" you the money would have to fill out forms and provide proof of the transfer from their bank account to yours and I think the money has to be sitting in your account for a few months also. Your mother would have to say that it is a gift and not a loan for the banks to agree. HTH!
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| Posted 8/13/11 8:43 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by BabyLove08
Posted by Momma2Be
The PP is correct about you having to fill out documentation that proves that a family member gave you the money as a gift.
In addition to the money DH and I had in savings for a down payment, closing costs, etc. we also had to have about 7 months worth of mortgage payments in reserve.
Thank you. I know this may sound ridiculous but in Re: to you needing 7 months of payments in reserve, can someone lend you the $ to have in your acct at the time they are looking for it?
No, if you make a large deposit they will want you to prove where it came from, and if someone gave it to you you likely will not be approved. We used a good portion of our wedding gifts and I had to got to the bank and get copies of every deposit made going back 3 month including a copy of every single check people gave us for our wedding. If it's a cash deposit, then they look at that as zero. Any cash deposits that couldn't be verified they didn't count towards the amount we needed to close. If you can get someone to give u the $$, keep it in your account for a good 6 months to a year. Believe me they are very thorough and overly cautious....
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| Posted 8/13/11 8:44 PM |
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lovemyfamily88
LIF Adolescent
Member since 5/10 641 total posts
Name:
????
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Re: Is It True...Re: Getting a Mortgage
Posted by BabyLove08
Posted by Momma2Be
The PP is correct about you having to fill out documentation that proves that a family member gave you the money as a gift.
In addition to the money DH and I had in savings for a down payment, closing costs, etc. we also had to have about 7 months worth of mortgage payments in reserve.
Thank you. I know this may sound ridiculous but in Re: to you needing 7 months of payments in reserve, can someone lend you the $ to have in your acct at the time they are looking for it?
Having 7 months of morgage payments is for your benifit. Owning a house is not only about being able to pay a morgage. There are so many things that come up.
Someone else mentioned what if you lose your job? How are you going to come up with the money if you have no savings.
Take 6 months to a year. Save as much as you can, then buy your house.
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| Posted 8/13/11 8:45 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Posted by Nifheim
we only had 10K left after closing. They cleared out 5K extra at closing that was completely unexpected so left us with 5K. They gave us a good faith estimate but they forgot we had to pay all the taxes the day of closing for the year. Totally killed us.
When we close we had booked jobs already to start so we did them so that gave us zero savings, then emergencies happened we charged and we are just almost paid off on cc but we have $300 in savings since we are paying cash for everything. So lesson learned have the MOST amount of money possibly walking into closing in the bank because you never know.
My uncle just closed and thought he just had to paint and order furniture. He got in and realized all the windows were sealed shut so he had to order new windows, he found out the AC wasn't running at !00% he had to fix that, etc. stuff creeps up.
That's crazy how did the inpector miss that about the windows!?
Anyway just wanted to add an example for the poster- about 3 weeks after we closed our homeowners ins co threatened to drop us because of the condition of the roof. Our inspector told us we had a good 2-3 yrs before we would need a new one but surprise!! Bye bye 7k!! Not to mention a new oil tank and electrical panel were needed (which we already knew but had scheduled before the roof) so month 1 of being a homeowner we spent 11 grand on repairs. Thankfully we had the money....
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| Posted 8/13/11 8:53 PM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: Is It True...Re: Getting a Mortgage
Posted by BabyLove08
Posted by LSP2005
How would you put down a down payment if you had no savings?
The downpayment, closing costs, etc etc would come from a gracious family member My DH and I have great jobs and besides a zillion bills(we have NO credit card debt) but we are spenders so our bank account has next to nothing in it right now.
I think you're extremely lucky to have a family member who is going to give you the closing costs, etc. But are you and your DH going to change your big spending ways once you're in the house and start saving money? That would be my concern if I'm the bank. As others have mentioned...unplanned expenses always pop up. You really need to make sure you're prepared. Making a good salary is just not good enough. You have a good emergency fund. Unless this gracious family member is going to keep giving you money...which would be awesome
Message edited 8/13/2011 8:56:18 PM.
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| Posted 8/13/11 8:56 PM |
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jmf423
:)
Member since 5/05 6372 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
we had money for our down payment, but DH had a lot of it in cash that wasn't in the bank (don't ask....lol) and when we went to the mortgage co. they needed to see the money in our account and know where it came from.
there are a lot of new laws regarding large sums on money and mortgages apparently. anyway.....my brother "gifted" us the money from his personal account. i needed to send the mortgage co. his bank statements showing he had the $ in there and that he withdrew it. then he had to fill out forms saying it was a gift.
then we just gave him back the cash.
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| Posted 8/13/11 9:02 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
Even with a good salary and a generous family member, I would not feel right about buying a house with nothing in savings. What happens when a big, unplanned repair is needed? Dh and I have a separate savings account just for this- we put a very small amount aside each month and then dip in when we have a repair to make. It hurts a lot less this way.
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| Posted 8/13/11 10:11 PM |
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JustJack
:)
Member since 2/06 2041 total posts
Name:
J
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Re: Is It True...Re: Getting a Mortgage
I agree with the others. We have a fairly new house and still there are always repairs. Our home depot bills are outrageous, and there is always something that needs to be done, for instance there is siding popping out and we need that fixed otherwise there can be water damage, we need a new heating system, last year we did a driveway, this year we redid a bathroom, we have a list of things we need/want to do in the future. Fencing, sheds, lawn maintence, it adds up sooooo fast. We have a lot in our savings and it is still hard and we are not big spenders.
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| Posted 8/13/11 10:53 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Is It True...Re: Getting a Mortgage
You need that money from family/friends in your account. Not "they will" give us money. Nobody is going to trust that!
You live paycheck to paycheck. No lender can trust you on how you can successfuly have enough money to put money down and money for closing costs.
How much are you putting down? Is there such a thing as 0 money down now? Even with an FHA it's 3.5%.
Do you have a 401K, savings account, retirement accounts?
You can't have NOTHING. Nobody is going to loan you any money. And if you do, you have to have some sort of liquidity.
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| Posted 8/14/11 6:17 AM |
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schmora15
LIF Adult
Member since 9/08 2476 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
We had a similar situation, but unfortunately the seller totally lied about his financial situation (liens against house) so sale never went thru.
We used continental. Told them our situation, and the banker told us we would have to provide proof that the funds came from the family members bank account. They would have to provide statements.
We went thru the approval process twice, because the seller dragged things out and this is how they told us we could do it.
It probably is a company to company thing. GL!!
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| Posted 8/14/11 8:20 AM |
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schmora15
LIF Adult
Member since 9/08 2476 total posts
Name:
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Re: Is It True...Re: Getting a Mortgage
We did have retirement accounts though..
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| Posted 8/14/11 8:21 AM |
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