Me and wife , we are planning to buy our first home in north California. We are looking to get a place in Dublin or Pleasanton , a single family home . How much do we need to put down in order to avoid pmi? Also how much do we need to show in our bank account to get a decent interest rate ? Both our credit scores are close to 830.
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- Yes in general banks don't care how how much your score is above 760 since credit risk is almost zero at that point
- The vast majority of the issues were with subprime, 0% down loans, negative amortization loans, and investors. Even with a roughly once in a generation recession and the worst decline in home prices in the history of our country defaults for people with 20% down and good credit scores. Nice try though :)
- Get a mortgage broker and get pre-approved before you start shopping. Then you can stick to your price range.
- 20%, if you have reserves you can get rate discounts for flybys at 250, 500, 1, 2.5, and 5m.
- Lenders will give you significant discounts for new or more business. This often means opening a new account and funding it for a few days so if you can deposit or transfer funds they will cut your rate. Often called a flyby because most people close the account after getting the discount.
- Intel / Eng bobwho?We bought a home in Dublin and did put about 25% down. Plan was to get mortgage close to rent amount we used to pay. Mortgage rate was based on one income. If you going as joint with your spouse, lenders will provide rate based lowest score out of two. Watch out for that.