Do you really need to get a loan when buying a house?
I just saw the most perfect house and I showed my fiancé (will be married by the time we actually get a house). Its in our budget and what I am surprised about is that there is a pool in the back. Inground. I would be so close to my job. He even loved it too.
However, we were wondering do you actually need to get a loan to buy a house? What if you have every penny saved up for a downpayment? We arent sure if this house will still be available by the time we will actually plan on buying a house (which probably has to be in 7 months. Either that or we rent this apartment for a second year) I just havent seen anything more perfect than this for us and the pool is a bonus
- Anonymous9 months ago
Unless you already know that because of lousy credit or short term job histories why not just go talk to a lender and see if you can qualify for a loan to buy it? Interest rates are great right now so what are you afraid of income to debt ratio, and incomes that would not even come close to allowing such a home purchase price?
ADDED NEVER EVER NEVER buy a home with a mere fiancee or girlfriend/boy. Be married first or in a legal relationship because we read here daily of idiots who do and get all involved in buying a home etc and since it is so easy one or the other just walks away leaving the other with the whole financial mess!
- StephenWeinsteinLv 79 months ago
You do not need a loan if you can put down however much the house costs.
- BLv 79 months ago
if the house costs $200,000 and you have saved $40,000, you could put the $40,000 down and loan $160,000 from a bank to buy the house. but if you had the entire $200,000 in cash, you could buy the house without the loan.
many banks would be happy to have you fill out an application, and you could see EXACTLY how much of a house you could buy. I would do that first. the banks will evaluate your credit, your jobs, your salaries and your downpayment.
- Casey YLv 79 months ago
What do you mean a down payment? If you don't get a loan (mortgage), you would be paying for the entire purchase on your own?
How else were you planning to give money to the owner? On a monthly basis?? I mean, there are some homeowners willing to do this occasionally, but it definitely isn't the rule or even common.
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- JudyLv 79 months ago
If you have the entire COST of the house saved, plus closing costs which will probably be several thousand you can just buy the house for cash, no loan needed. If you only have the DOWN PAYMENT saved, where do you think the rest of the money would come from? Comes from a loan, called a mortgage. The down payment is what you HAVE to have saved, you can't borrow that. Chances of that house still being available in 7 months are real low. See a lender to get preapproved.
- ibu guruLv 79 months ago
A down payment is only a partial payment. Say the house price is $500,000, and you put $50,000 down when you sign the contract. Where's the $450,000 you owe the seller at the closing? Got that in cash? If you do not have enough money to pay the full purchase price, plus adjustments, closing costs, moving costs, any fix-up costs, you have to get a mortgage from a lender so that the seller is paid in full at closing.
- EvaLv 59 months ago
It's rare that someone has all the money saved up to buy their first house. It's not likely to still be available in 7 months. If you have a decent downpayment saved, put an offer in contingent on you being able to obtain financing. Secondly, it's foolish to tie up all your liquid savings in a house. With interest rates being so low, it's a good time to buy.
- curtisports2Lv 79 months ago
You need to get a loan if you don't have a down payment of 100% of what the seller wants, plus the costs of closing (which can be $1,000+ even when no mortgage is involved) and the tax adjustments and property insurance and moving expense and all of the little (or big) things you will need or want for the new house.
- John AldenLv 79 months ago
Unless you have cash saved up for the FULL price, how do you expect to pay for it??? There is no way you will make it to first base on this deal without being pre-qualified by a mortgage lender for the balance plus closing costs.
- Anonymous9 months ago
If you have enough cash to buy a house you don't need a to get loan.