1,000,000 Home Purchase Questions

janritch · Joined: 15 Jun 2006 Posts: 2

Hello,I am new to this forum and I hope that I am following all of the posting rules.
My husband has worked very hard over the past 20 years and we are finally in the market for our dream home,however this is a confusing process,at least for me.
We are looking in the 1,000,000-1,200,000 price range.
Considering a down-payment of 45%.
Would a large down payment such as this help to speed-up or streamline the loan process?
We would still be carrying a very large mortgage and fall within the jumbo rates,which carries a higher rate.
Any advice on which lenders would give the best rates or options on this type of loan? Thanks so much,Janet

I should mention that we are in Florida

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Jan,

You're following the rules :) The only concern we usually have for rules is that we don't want you the consumer to be inundated with 5 billion random LO's or other sales people posting their links and phone numbers if they're not part of the community. So you're fine!

As far as your scenario, 45% will obviously help! As far as the "streamline" process that depends a great deal more on your credit and your income. If you have stellar credit and a good income, chances are you'll be in good shape.

I'd be happy to talk to you if you'd like, I've done a few loans down in Florida. I'm sure there are a few others around here that lend in Florida, they should be around shortly ;)

janritch · Joined: 15 Jun 2006 Posts: 2

Thanks Travis,

I feel that I should probably post a little more information,as I hesitated to do so in the first post for various reasons.
Husband has sold business ,of which he owns 20% stock,which equates to him clearing around 3,1000,000 after taxes.He will remain on with the new owner for another 3-5 years which means his regular salary would stay in force at 127,000 per year.
His middle fico is around 700,give or take a point depending on the month that we pull from MY FICO.
Of course we would not consider paying cash,because we would have no write-offs, other than taxes.
Just thought that this extra information might help better determine our
position and best route to take. Janet

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

It does help. We would need to know how much in monthly outgoing debt you have to be a bit more accurate, but with the amount of reserves you have and if your overall ratio is 50% or less you're likely fine. If it's 40 or 45% even you'd likely be fine with those kind of reserves.

dsouthr · Joined: 24 Jun 2006 Posts: 15 Location: Columbia SC

True the more you put down the better rate but not by all that much, but I don't think I would want to put more than (or less than) 20% down. Use the balance of what you would put down to give you some income and use the mortgage interest deduction to your advantage. I would put 20% down only to stay away from MI.