topic Re: Down Payment question in Mortgage Loans

Down Payment question

nvrgiveup08 — Fri, 11 Jan 2013 17:08:49 GMT

I have been looking at a forclosure property that has dropped to $87,800. Dilema is that I only have $4000 in savings. I have already recieved my W-2's and have input the info in Turbo Tax and have gotten the refund amount that will boost my savings to around $10,500. Is it fine to get preapproved now and place a contract on the home since it takes about 30-45 days to close or should I be patient and wait until I know that the refund has been deposited to my savings acct??? Scores are 645, 638, 640 Myfico and lender pull. Plan to use the Homepath Mortgage program.

Re: Down Payment question

Anonymous — Fri, 11 Jan 2013 17:13:21 GMT

You should be fine either way.

You can apply now and start the process or wait.

Worse case if that is what you are worried about it would be one of your conditions.

I dont see an issue from the limited information you have given.

Good luck....

Re: Down Payment question

nvrgiveup08 — Fri, 11 Jan 2013 17:16:45 GMT

Thanks. This is the biggest concern that I have. No overdrafts, cc balances under 15%, and 11 years on the job. I just worry that UW likes to see reserves in the bank.

Re: Down Payment question

Anonymous — Fri, 11 Jan 2013 17:22:22 GMT

Yes most do want you to have reserves. But different lenders have different requirements.

Just talk to a few Brokers and LO's and let them guide you. They know the requirements from the lenders they deal with.

Re: Down Payment question

DallasLoanGuy — Fri, 11 Jan 2013 19:53:28 GMT

reserves look good to the automated underwriting engine.... but they are not required an very many loans anymore.

you are fine.

Re: Down Payment question

Anonymous — Fri, 11 Jan 2013 20:27:39 GMT

Be careful with your timeline. If you go ahead now, make sure you can extend the closing if you need to. The IRS isn't going to start accepting 2012 tax returns for processing until January 30th at the earliest, and then the absolute soonest you could expect your Federal refund after that would be 10-14 days, putting you at mid February. Any number of delays could happen with the IRS as well. I would count on not having the cash until late February, just to be safe. If you're also counting on a state return, then it might be longer too, depending on the state.