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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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How much down at contract?
Do you always have to give the full DP? We have an accepted offer and doing inspection this Friday. We are pulling most of our DP for an investment account. I already requested the $$ but it won't be here for another week. Can we give them a few thousand and then the full DP when the rest of the money goes through? Is that normal?
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Posted 2/11/15 10:46 AM  |
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FirstMate
My lil cowboy
Member since 10/10 7790 total posts
Name:
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Re: How much down at contract?
At contract you only put down part of your down payment. I typically advise my clients 10-20% depending on how much it is. For example, if you are putting $100,000, I would usually have them put $20K down at contract. Let your attorney guide you on that.
Message edited 2/11/2015 10:49:50 AM.
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| Posted 2/11/15 10:48 AM |
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blu6385
Member since 5/08 8351 total posts
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Re: How much down at contract?
I put very little down. I also didn't put 20% down. I want to say I think I only gave a few thousand
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| Posted 2/11/15 10:51 AM |
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Re: How much down at contract?
If you have a big down payment, then you will definitely split it up.
But a lot of sellers' attorneys want a minimum of $10K down, so sometimes people putting down 3.5% on an FHA loan with a lower price home do put down all or most of their down payment.
I've had clients who need to get money out of retirement accounts and such for down payments, and sometimes it's worked out such that they put down a very minimal amount (couple of thousand dollars) at contract signing, then another chunk when the money comes in and then the rest at closing. So if a client was putting 20% down total on a $400K house, they might put $2K down on signing, another $18K down when they get their funds, and then the remaining $20K at closing.
In my experience, it's best to discuss all of the terms, including the down payment, at the outset. Sometimes the attorneys really can make life difficult or take odd hard line positions about things (and I am saying that as an attorney myself). So I think the key is to make clear what you plan to do and make sure everyone agrees. The worst is when one party feels the other is changing the agreement after the fact or "trying to get one over on them" -- whether that's true or not, the perception of it can be very damaging to a transaction and just make life generally more difficult, which we try to avoid!
When I present an offer for the buyer, I always ask how much they are putting down (and how that is split up between contract and closing). As a listing agent, I always ask about this, too. Did you not discuss this when you were negotiating the offer with the seller?
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| Posted 2/11/15 11:16 AM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: How much down at contract?
We offered 10% down at contract but our lawyer negotiated less than that. I think we put about $20k down at contract and the rest at closing.
Message edited 2/11/2015 2:30:44 PM.
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| Posted 2/11/15 12:06 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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How much down at contract?
You do not put your entire down payment down at contract. You put a small percentage of your down payment with the balance of it paid at closing
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| Posted 2/11/15 12:08 PM |
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Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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How much down at contract?
as little as possible. i had to go to court after a failed contract (on the seller's side) and only got 1/2 back!
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| Posted 2/11/15 12:37 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: How much down at contract?
Posted by Century 21 Dallow - Christine Braun
If you have a big down payment, then you will definitely split it up.
But a lot of sellers' attorneys want a minimum of $10K down, so sometimes people putting down 3.5% on an FHA loan with a lower price home do put down all or most of their down payment.
I've had clients who need to get money out of retirement accounts and such for down payments, and sometimes it's worked out such that they put down a very minimal amount (couple of thousand dollars) at contract signing, then another chunk when the money comes in and then the rest at closing. So if a client was putting 20% down total on a $400K house, they might put $2K down on signing, another $18K down when they get their funds, and then the remaining $20K at closing.
In my experience, it's best to discuss all of the terms, including the down payment, at the outset. Sometimes the attorneys really can make life difficult or take odd hard line positions about things (and I am saying that as an attorney myself). So I think the key is to make clear what you plan to do and make sure everyone agrees. The worst is when one party feels the other is changing the agreement after the fact or "trying to get one over on them" -- whether that's true or not, the perception of it can be very damaging to a transaction and just make life generally more difficult, which we try to avoid!
When I present an offer for the buyer, I always ask how much they are putting down (and how that is split up between contract and closing). As a listing agent, I always ask about this, too. Did you not discuss this when you were negotiating the offer with the seller?
Christine thanks so much! Yes at offer we said we were putting down the full down payment since we understood that is customary when putting down less than 20%..we are doing less than 20%.
I just found out that all of our money will come through before contract signing which I hope is next week (inspection is on Friday) so all is good.
Thanks everyone!!
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| Posted 2/11/15 1:11 PM |
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RFetch1989
LIF Zygote
Member since 2/15 48 total posts
Name:
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How much down at contract?
As everyone above stated, you only put a small percentage down initially and the rest due at closing. We ultimately put down 20% because we didn't want to pay PMI.
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| Posted 2/11/15 2:12 PM |
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FirstMate
My lil cowboy
Member since 10/10 7790 total posts
Name:
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Re: How much down at contract?
Posted by jellybean78
Posted by Century 21 Dallow - Christine Braun
If you have a big down payment, then you will definitely split it up.
But a lot of sellers' attorneys want a minimum of $10K down, so sometimes people putting down 3.5% on an FHA loan with a lower price home do put down all or most of their down payment.
I've had clients who need to get money out of retirement accounts and such for down payments, and sometimes it's worked out such that they put down a very minimal amount (couple of thousand dollars) at contract signing, then another chunk when the money comes in and then the rest at closing. So if a client was putting 20% down total on a $400K house, they might put $2K down on signing, another $18K down when they get their funds, and then the remaining $20K at closing.
In my experience, it's best to discuss all of the terms, including the down payment, at the outset. Sometimes the attorneys really can make life difficult or take odd hard line positions about things (and I am saying that as an attorney myself). So I think the key is to make clear what you plan to do and make sure everyone agrees. The worst is when one party feels the other is changing the agreement after the fact or "trying to get one over on them" -- whether that's true or not, the perception of it can be very damaging to a transaction and just make life generally more difficult, which we try to avoid!
When I present an offer for the buyer, I always ask how much they are putting down (and how that is split up between contract and closing). As a listing agent, I always ask about this, too. Did you not discuss this when you were negotiating the offer with the seller?
Christine thanks so much! Yes at offer we said we were putting down the full down payment since we understood that is customary when putting down less than 20%..we are doing less than 20%.
I just found out that all of our money will come through before contract signing which I hope is next week (inspection is on Friday) so all is good.
Thanks everyone!!
Do NOT put your entire down payment down at contract. Deals collapse and you don't want your entire down payment tied up in the Seller's attorney's escrow account if things take an unexpected turn.
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| Posted 2/11/15 8:42 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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How much down at contract?
We did an fha loan in 2010 and we had to put down the entire down payment
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| Posted 2/11/15 10:06 PM |
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Re: How much down at contract?
Posted by Mrs213
We did an fha loan in 2010 and we had to put down the entire down payment
Sometimes you must, if the down payment is really small, like under $10K. That's been my experience.
Obviously, the buyers and their attorney minimize the amount out down on contract and the sellers (and their attorney) want the buyers to put down as much as possible. A lot of times, people split their down payment in half (if they are putting down 20 percent or less) . With a large done payment or all cash buyers, 10 percent is standard.
If a buyers attorney can negotiate less down upfront, that's obviously advantageous to the buyer, but not always possible.
Of course, there is some protection by way if the mortgage contingency clause and the requirement that the seller provide clean title, such that if a buyer couldn't get financing despite good faith efforts, for example, they wouldn't lose their down payment.
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| Posted 2/12/15 9:10 AM |
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Lara&Aidansmommy
For mom i miss u ETC ILOVEU
Member since 3/07 13921 total posts
Name:
ETC I LOVE YOU
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How much down at contract?
We put down 20%
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| Posted 2/12/15 9:12 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: How much down at contract?
W the the contract we gave 1000 and when they accepted it we gave an additional 9000. At the closing we gave the rest of the cash. Well actually it was wire transferred before the closing.
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| Posted 2/12/15 9:37 AM |
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