Buying a house?

Within the next year my husband and I would like to buy a house. We’ve never bought a house before so I have a few questions. we would apply for the VA home loan (0% down) so even if we decided to put some money down, what would be a reasonable amount? Going by, if we bought a house under $180k. I mean how much should we really save for buying a house, since there’s closing costs and what not. 

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  • nappa
    Lv 7
    2 months ago

    The more money you put down the lower your payments will be, what is best ( I feel ) is how much can you afford to put down, don't leave yourself short for closing costs and updates you want to do to house after you move in.. TIP// ask seller to pay part of your closing costs..Start at 3 % for sure..

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  • 2 months ago

    40 k................

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  • Anonymous
    2 months ago

    Most banks, mortgage companies want 20% down and it's wise to do that!

    Otherwise your payments are much more than they would be otherwise!

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  • 2 months ago

    I just bought a house from a builder using a VA loan. All it cost me was $500 earnest money, and that was refunded to me on closing.

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  • 2 months ago

    Most lenders require at least 15-20% down--which gives you a good cushion and keeps you from being charged PMI in your monthly mortgage payments. VA loans do allow 0% down, but it's not smart to do that unless you have such a great guaranteed income per month that you can afford the higher payments and interest rates you will be charged. Closing costs will vary a great deal. Depending on your purchase, closing fees may be partially handled by the seller.  it's impossible to estimate what yours will be; house price is only one factor. 

    Obviously for long-term financial health, the more you put down, no matter how you get your loan, the better shape you'll be in. And in addition to closing, you should set aside part of your reserve for repairs, inspections, and insurance. 

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  • 2 months ago

    Do what's in your gut! Nothing else! Have a nice day!

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  • 2 months ago

    The more you put down at the start, the less interest you will pay.  On a $180k house, it would be nice to have at least $50k to put down, but you may not "need" that much if you don't have it.  Figure on perhaps $7k or $8k as closing costs on that amount. 

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  • 2 months ago

    Step one of any home purchase you can't buy in cash is to speak to a lender.  There you will be determined as valid borrower and figure out how large of a loan you can obtain and provide you with a "Good Faith Estimate" (GFE) of all the expenses you will need to make the purchase.  While a VA loan may be an option to you, that doesn't mean one should be obtained.  In fact you can obtain multiple GFE's using different loan program to compare the costs and use to compare with other lenders.  But as to how much should you save?  That is the easy question ... as much as you can.  It is not just about paying the closing costs (and down payment if applicable) but having a cushion of money to pay the mortgage if you lose your job  When you own a house the days of living paycheck to paycheck should be behind you.

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  • 2 months ago

    If you have the income and credit to qualify for the mortgage you want and one of you has VA eligibility, you can finance 100%. You need to know how much the annual property taxes and a one year homeowner's policy is, because those are paid up front. In that price range, closing costs paid by the buyer might be 2% of the purchase price. You will also pay the VA funding fee of 2.3%. You can lower that fee to 1.65% by making a 5% down payment.

    If you can save up $15k, you should have enough to cover the 5% down and everything else. The big unknown is property tax.

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    • curtisports2
      Lv 7
      2 months agoReport

      The requirement to escrow taxes and insurance, along with qualifying standards, is up to the individual lender. VA is only the insurer of the loan has no say, other than being eligible, in who gets a loan. Even if you don't escrow, the taxes and insurance still count towards the allowable payment.

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  • 2 months ago

    If this is a 0% down loan and they let you put the closing costs into the mortgage (ie if the seller is asking 150k for the house, you offer 150k but they pay up to 8k in closing costs - they'll probably take this deal and the 8k more or less covers all your closing costs) then you can essentially buy the house without putting anything at all down.  

    You may still need a few thousand for moving expenses and utility deposits and what not, but that might be all you really need.

    • SumDude
      Lv 7
      2 months agoReport

      Q: typo ?  do you mean "you offer 1 5 8 k ... (150 + 8)"? // regards

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