Home loan through a bank??

mattsbride2006

I went into Chase to see what their current percentage rates were and to talk with a home loan officer. I was surprised to hear they wouldn't even consider giving us a loan unless we had at least two-three months mortgage and tax money sitting in the bank on top of our down payment costs that we have saved up. We had friends who just bought a house and they used all their savings for the down payment and then had to have the seller pay for closing costs because they used all of their savings already. You would have thought I would have heard of this rule before from someone. We are trying to shop around for a home loan and have a small FHA down payment saved but now we have to wait longer to actually buy because of this! Dang!

HotGymGirl

Yeah, they're wrong, unless you've left out something regarding your credit or something. Are you in a USDA eligible area? They're much easier to close, and Chase offers them.

Julia_JJ

Sure, there are lenders who will close without that much in savings. But honestly - I wouldn't do it. What happens when the water heater breaks or an appliance dies? Chase is being smart, IMO.

Pamela05

We used USAA and they required the same thing.  It's smart of them.  What happens if you used everything you have and some emergency happens the first month and now you can't make your mortgage payment?

We actually had to pay the taxes and 1 years of insurance into our escrow account at closing, but they required a cash reserve verified in the bank for 2+ months mortgage and living expenses.

mattsbride2006

True. It is important to have some savings that doesn't include what your going to put down. From what I hear there are a ton of extra expenses right when you move into a house. I guess we will just have to postpone getting a house till this summer when we can have a lump sum emergency fund in the bank.

prncschrsty

We got preapproved with $4,000.00 in the bank on a 30 year convential, 5% down payment. We went through Wells Fargo. We also got preapproved through a local credit union to see if the rates would be cheaper (they weren't). So keep saving, the more in the bank, the better improvements you can do=)

mattsbride2006

I thought that a conventional loan meant you had to put down 20% down. Thats why we were going to have to do an FHA because you can put down the lowest amt 3.375%.

HotGymGirl

mattsbride2006:

I thought that a conventional loan meant you had to put down 20% down. Thats why we were going to have to do an FHA because you can put down the lowest amt 3.375%.

No, you don't have to put down 20% to obtain a conventional loan. There's still a MyCommunity program out there that where you can put down 3%, but the rates are higher, and it's conventional. USDA is 100% financing... did you ask your broker/loan officer about it and if you're eligible?

Sam Abbott

We got pre-qualified through our bank, BB&T, and they have several other loan programs other than FHA. They require 5% down for a conventional loan but you do not have to pay any PMI.

Mrs.Sully

Many lenders will require you to have reserves at closing. Some will want to see one month of expenses worth. Some will want more than one month. They want to know you can make your first payment. If you're going to completely deplete your savings to buy, you're probably not ready.