What can I expect from lenders if I have $100k to put down on a home and would like to buy one for $230k?
subliminal1973 asked:
I have OK credit and my wife has little/no credit.
Will a lender automatically want our business ($100k is a lot to put in their coffers)
Will a lender give us the best rate available when we have so much to put down?
We have started looking at homes - the lenders are next.
ANY help would be greatly appreciated. Thanks.
I have OK credit and my wife has little/no credit.
Will a lender automatically want our business ($100k is a lot to put in their coffers)
Will a lender give us the best rate available when we have so much to put down?
We have started looking at homes - the lenders are next.
ANY help would be greatly appreciated. Thanks.
It’s wonderful that you’ve saved up that much for a down payment, so you won’t get any penalties there, however most lenders now penalize you if you have bad credit.
If your credit is below 720, and especially below 680 you probably won’t get the best rate out there, it will probably be .25% to .5% above what you thought you would get. If your wife has bad or littler credit, add her as a titled non-borrower. If you put her on the mortgage, it may further raise your rate due to the lack of history.
Good luck and it’s a breath of fresh air to have someone post who actually has money to buy a house, rather than the “how do I get 100% financing” questions!!
You actually should have started the other way around. Find a good mortgage broker and have him search for the best deal. A good broker should have ties to at least three if not more lenders.
Get pre-qualified/pre-approved. Let he banks tell you how much they will lend you, not how much you want to borrow. Once you have the pre-approval, you will then know how much house you can afford (not necessarily how you will buy). Tell them upfront about your down payment (remember, not all of that $100K will go towards equity, there will be closing costs to pay).
Now you can look for a house in your price range (the $230K). By being pre-approved, you may get a slightly better deal since the seller will know that the chance of financing falling through is lessened. (I will be honest, the last two times I have financed, I have used LendingTree.com and I have been extremely pleased.)
Good luck and happy househunting.