How much is needed to start the application process

[Anonymous]

I am in the process of improving my credit and waiting for my 2nd year post bk, 3 trade lines all paid on time for 12 months , trying to save for a down payment although I have my 401k for almost 19k as of this date.. question is how much do I really need to start aside from the down payment and closing cost... fees, etc?

[Anonymous]

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@Anonymous wrote:

I am in the process of improving my credit and waiting for my 2nd year post bk, 3 trade lines all paid on time for 12 months , trying to save for a down payment although I have my 401k for almost 19k as of this date.. question is how much do I really need to start aside from the down payment and closing cost... fees, etc?

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I wouldn't touch my 401k for anything. You'll need that money in the future, and it may also have tax implications.

[BrianB_The_Loan_Professor]

If you plan on buying using fha, which is the lowest down payment option available, then 6% is about right

3 down and 3 closing costs. You may negotiate with the seller to cover the closing costs but you should have some reserves - not required - but stuff comes up

Brian

[Anonymous]

The stuff that comes up almost immediately are earnest money, appraisal fee and inspection fee.  I also had a pest inspection.  All within 3 days of accepting the counteroffer.

[Anonymous]

Thanks for all your responses, it helps a lot.

[Anonymous]

Hi Brian, i have read on some post that the seller is paying the closing cost.  How do they do that, wiill the LO ask the seller or the borrower is the one negotiate with the seller?