Those that are home owners...

[kball]

How much was the intial cost to buy your home minus the down payment if any? My wife and I will be buying soon and curious how much money we will need to have available for closing cost etc. I will be using a VA loan so no down payment required. Thanks in advance.

Kris

 

[Juruense]

I had no out of pocket costs. However, after I bought my home I had to spend quite a bit on long handled tools, lawn mower, tools, repairs, minor home improvements, etc.

You should not need any money for a VA loan.

 

[Mr. Mach-ete]

/\ /\ /\ Yep. I spent money on yard tools and paint.

 

[s_x_i]

A lot of loan companies - I'm not sure if the VA is one of them - get the years taxes and insurance from you up front.

Even though you might put $5,000 down, your closing costs could be $4,500 so on a $100,000 loan you'd be financing $99,500 even with $5,000 down.

I'm not sure how the V.A. works, but bear in mind you might need to escrow your taxes and insurance for the first year at closing.

 

[birch]

KBall,

I live in the Springs also. I have a few realtor friends, and I can hook you up with some consult..and where NOT to buy...(I'm up in Stetson Hills...farther north the better IMO)

My last two houses have also been VA, so I have a little experience. Shoot me a pm with your #, and we can talk.

Vic

 

[145hpv6]

first house no money down , 2nd we put 20% down so we didn't have the lame pmi insurance. lots of people forget about pmi when buying homes. good luck

 

[audioqueso]

First, to answer your question, you should look at $10k for closing just to play it safe. Some are lower, some are higher, but $10k is a safe estimate.

You should not need any money for a VA loan.

Second, the reason you do not need any money down is because VA will grant you a loan up to 110% (or 105%.. don't recall exactly). Meaning, you obviously are not going to pay more than 100% of the contracted price. Yet, you still are guaranteed and allowed to finance that extra 10%.

For example,
The contract price is agreed at $300k. VA grants you the loan at 100%, but you are allowed up to $330k so up to $30k can be used for closing cost.

State laws require everyone to pay taxes, etc, etc.. the closing cost. There's no exception. The ONLY exemption VA has is PMI (and that's because it has 100% financing). No matter what, both parties still have to pay all the taxes up front. Whether it's the seller who pays 100% of all the taxes, or both split it 50/50. Taxes and interest still have to be paid upfront. That's what the closing cost is for.

However, keep in mind that when using VA, they are very strict about the appraisal. They will not grant over the appraisal estimate.

For example,
You and the seller come to a contract price of $300k. You're granted 100% (so you can use up to $330k). You think you have $30k that you can use for closing. The appraisal comes in at $290k. Your maximum loan now is $290k. So at this point VA will only give you $290k... period. Meaning, you no longer have extra loan money to use as a closing cost. You would have to bring the price down to $285 so that you can use that extra $5k for closing costs.

VA is very good for a first purchase, but it is tricky in some areas because of the sky rocketed real estate. Good luck.

 

[SnkBtn99]

Depends on how much you are buying ...

 

[kball]

Thanks for all the good info all. I'm TDY right now for another 2 weeks and when I get back, the wife and I will seriously start looking. We already know the area we want to live at. Our lease for our apartment is up at the end of May. Do you think it is to early to start looking? I don't think it will take long to find a place. There are houses every where in CS. Thanks again for the info. Cheers.

PM sent Birch.


Kris

 

[birch]

It's never too early to start looking for a house. It's a real buyers market right now in the Springs.

 

[JMD0346]

I put down 3%. No closing cost.

 

[SSCOBRA03]

No PMI with a VA loan, But they do charge a 2% VA "fee."

 

[audioqueso]

No PMI with a VA loan, But they do charge a 2% VA "fee."

True. Unless you have 10% or higher disability. Then you are exempt.

 

[Black03Mach]

here is the mortgage breakdown
your closing costs consist of
-title insurance
- flood cert fees
- appraisal fee (if they have to get an appraisal)
- upfront escrows, all but two states allow for 2 months reserve, so if your taxes are due in dec and you buy in june your going to have to provide half of the tax money (if your going to escrow your ins and taxes)
then there are points...
some companies mandate one point which is one percent of your loan value
and depending on your state can go as high as 5 points...so on a 100k house expect 5k in points alone...
so your closing costs can range anywhere from 1k-12k depending on house value and state guidelines

now for pmi...the loop hole around that is doing an 80/20 loan...basically you have 80 percent of the loan at a fixed rate for 30 years, and 20 percent at an adjustable rate (which has a lower rate than the fixed) and more than likely is going to be fixed for 2 years and then adjust every year until its paid off

so the best thing is to roughly have 20 percent of the house value as a down pmt to avoid pmi...other than that its pretty straightforward

 

[audioqueso]

He's going to be using VA, so he does not need to worry about that.

 

[Smokey1226]

words from a fellow realtor, you might want to buy before this spring....from what were being told its going to change from a buyers market to a sellers market again!! Atleast around my area.

 

[N2DAMYSTIC]

For the most part it is a Buyers market now and most sellers are offering 10 - 15K in closing costs. I have a feeling it will not last long though. To give you some insight - Paid 150K in 2000 with 10K down. I am selling in the Spring for 450K. As others have said, Have some money laying around for the essentials Mower, etc.