How much should I finance when buying a house?
Posted by admin in Finance
Saturday, 7 May 2011 16:39
If the house is $117,500 can I finance more than that amount to buy furniture? Or does that money just go to the house cost? I have a lot of stuff I am needing to buy – house, furniture, house supplies, car… can I finance all of these or do they each have to be on a separate credit card or how does this work? I’m looking to buy my first home… sorry if this is a stupid question.
You cannot finance more than the house is worth.
You not only need 10% for a down payment, you also need extra money to pay for legal fees, surveys and inspections, land transfer tax, property taxes, utility hook ups, moving expenses, and any repairs or painting that might be required when you move in.
You should get pre-approved for your mortgage so you know how much you can afford to spend. Ask for a 25 year, fixed rate, conventional mortgage with the option to pay an extra 10% per year on the principal.
You can’t finance more than the cost of a house! These days, you can’t even finance the entire cost of a house. You usually need a minimum down payment of at least 10 percent of the cost, and most lenders prefer 20 percent. You’ll also need a good credit rating.
You can’t just finance everything you want to buy! Once you’ve bought your house and have proven that you can make those payments regularly and on time, *then* you might qualify for additional loans. Don’t go out and finance a new car now if you’re planning to start looking for a house — that will lower your available credit.
Probably the best thing to do would be to go to a Realtor or to a loan officer at your local bank. They’ll explain all the harsh realities of financing to you, because you seem to be sadly unsure of what is involved in buying a home.
You cannot finance more than the cost of the house. If you are needing to buy additional things, then the house you plan to buy is more expensive than you can afford. Keep in mind that home ownership is more than a mortgage payment. There’s also taxes, insurance, and maintenance to name a few.
actually you cant even finance the full cost of the house anymore. You need to have about 3% down. If you close after the 1st of the year you will need 3.5% down.
tacking things onto your mortgage is never a good idea. keep everything separate… and i suggest buying some things prior to buying the house (appliances, some furniture) so that you don’t have to pay for everything all at once.
These days, even asking about that may set off red flags to your lender.
They are not very interested in people who want to go in debt for every little thing they need in life.
My brother & his wife bought a house once, and they used borrowed and thrift store furniture for many years, until they got ahead on payments & stuff.
They didn’t even have drapes on their windows for many years!
Since then they have become millionaires from their prudent spending habits.
The same will NOT happen to you, if you think you need to finance everything you need.
Because you’re paying a LOT of interest on top of what the actual thing costs.
Not too smart a move, especially these days.
you need to think about SAVING money…
If you need to buy furniture and other things, you need to save money up first, the more you have in the bank, the better you are going to look to a mortgage company. so let’s say you can do a first time home-buyers loan with 3% down which is then $3525 and you can convince the seller to cover all the closing costs, but you have $10,000 in the bank, for the down payment and furniture, then you look better then just $3525 alone. You should see a realtor and get connected with a mortgage company, they will tell you exactly what you can afford and what you need to do to build you credit to afford what you want. Good luck!
has to be separate.