Posted on: 13th Mar, 2012 10:12 am
Hi all,
I just wanted to know if you can help me.
We saw a house for $350,000 and we were thinking of putting down 10%.
The realtor told us to increase the down payment because there are other buyers and it looks better and will likely be accepted.
The seller accepted our offer. We have about $63,000 total right now if we emptied our accounts.
Both our mortgage company and realtor told us that the seller doesn't care how much your down payment is so long as they get their money at closing. The mortgage company wants us to continue with the 10% down payment and they will finance 90% and instead of the accepted 20%.
Is this true? Also, what repercussions are there in doing this(Offering 20%, seller accepts, and only putting down 10%)
Thanks for everything,
Maury
I just wanted to know if you can help me.
We saw a house for $350,000 and we were thinking of putting down 10%.
The realtor told us to increase the down payment because there are other buyers and it looks better and will likely be accepted.
The seller accepted our offer. We have about $63,000 total right now if we emptied our accounts.
Both our mortgage company and realtor told us that the seller doesn't care how much your down payment is so long as they get their money at closing. The mortgage company wants us to continue with the 10% down payment and they will finance 90% and instead of the accepted 20%.
Is this true? Also, what repercussions are there in doing this(Offering 20%, seller accepts, and only putting down 10%)
Thanks for everything,
Maury
Hi maury,
If the bank and the seller has accepted your offer. Then I don't think you will have to worry about anything else. However, as you're putting down 10% down payment, there are chances that the lender may ask you to go for a private mortgage insurance (PMI).
If the bank and the seller has accepted your offer. Then I don't think you will have to worry about anything else. However, as you're putting down 10% down payment, there are chances that the lender may ask you to go for a private mortgage insurance (PMI).
As long as you get the mortgage with 10% down, you will be OK
If the mortgage is declined, you could lose whatever earnest money deposit you made before closing because you entered into a contract knowing you did not have 20% down and the Realtor and the lender also knew. The lender should know in the first place if you will qualify for the 10% down payment to lessen that risk of losing any down payment money you paid before closing.
If the mortgage is declined, you could lose whatever earnest money deposit you made before closing because you entered into a contract knowing you did not have 20% down and the Realtor and the lender also knew. The lender should know in the first place if you will qualify for the 10% down payment to lessen that risk of losing any down payment money you paid before closing.
