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.