Downpayment question $$$ with going to contract

Teri Posted: Mar 06, 2004 06:55 PM

Downpayment question $$$ with going to contract

Hi guys - We found a house that we may put a bid on, but we're confused as to the actual dollars due going into contract.

for example, if we say we're going to put down 20%, is half due when we go to contract, or ALL due at the beginning of contract?

So we don't have to tie up all of our money, is it possible to put down 10% at the time of contract, and then another 10% at the closing, just to have some extra cash on hand? Would that work?

Thanks in advance!!

Lisa Rose Posted: Mar 06, 2004 07:00 PM

Re: Downpayment question $$$ with going to contract

we put down only $10K at contract...whereas we put down about 30% total on the house

Teri Posted: Mar 06, 2004 07:02 PM

Re: Downpayment question $$$ with going to contract

Posted by Lisa Rose

we put down only $10K at contract...whereas we put down about 30% total on the house

Thanks Lisa - so then the balance of that 30% was paid at the time of closing, along with all the other costs and fees?

Lisa Rose Posted: Mar 06, 2004 07:40 PM

Re: Downpayment question $$$ with going to contract

yes...that is what we did!

we told the other lawyer that there is NO way we could walk away from $10k...that kinds helped!!

yabbobay Posted: Mar 06, 2004 09:13 PM

Re: Downpayment question $$$ with going to contract

I know NY is different...but we put down $4999...lol...our RE agent insisted we didn't go over $5K b/c its harder to get the money back...

Crisco718 Posted: Mar 06, 2004 09:30 PM

Re: Downpayment question $$$ with going to contract

We put down $1K going into contract and then 1/2 of our downpayment after the attorney review. We will pay the balance at closing.

Buttafli1277 Posted: Mar 06, 2004 10:27 PM

Re: Downpayment question $$$ with going to contract

It's true! If you back out of the contract you lose all of your downpayment. We did half at the signing of the contract, and payed the other half at the closing.

Kelly9904 Posted: Mar 07, 2004 01:37 AM

Re: Downpayment question $$$ with going to contract

We put 10K down and the rest of the 20% is due at closing.

But in the (extreme) case of the people we are buying from they had to put 20% at contract b/c that was the sellers demands.

HeatherandNick Posted: Mar 07, 2004 09:03 AM

Re: Downpayment question $$$ with going to contract

Congrats Teri!!! Where is the house?

We put 24K down at contract and the rest will be when we close (anyday now....)

LIPrincess00 Posted: Mar 07, 2004 09:13 AM

Re: Downpayment question $$$ with going to contract

We put 1/2 of our downpayment now (at contract) and 1/2 at closing.

Teri Posted: Mar 07, 2004 10:59 AM

Re: Downpayment question $$$ with going to contract

Posted by HeatherandNick

Congrats Teri!!! Where is the house?

We put 24K down at contract and the rest will be when we close (anyday now....)

Thanks but not sure we'll get it! There are already 2 other offers on the table at asking price and one couple already had their inspector in! Not sure how they can do that before all offers are presented so who knows.

Worst case, we lose but gain the experience I guess!

Thanks everyone!

yabbobay Posted: Mar 07, 2004 06:05 PM

Re: Downpayment question $$$ with going to contract

Posted by Teri

Thanks but not sure we'll get it! There are already 2 other offers on the table at asking price and one couple already had their inspector in! Not sure how they can do that before all offers are presented so who knows.

Worst case, we lose but gain the experience I guess!

Thanks everyone!

My guess is that they want to know if they should bid higher if countered...and it may be a friend...b/c having the inspection before the bid is accepted could mean you are out money

Teri Posted: Mar 08, 2004 09:11 AM

Re: Downpayment question $$$ with going to contract

Posted by yabbobay

Posted by Teri

Thanks but not sure we'll get it! There are already 2 other offers on the table at asking price and one couple already had their inspector in! Not sure how they can do that before all offers are presented so who knows.

Worst case, we lose but gain the experience I guess!

Thanks everyone!

My guess is that they want to know if they should bid higher if countered...and it may be a friend...b/c having the inspection before the bid is accepted could mean you are out money

We found out that this couple is from out of town, so they had to get the inspector in ASAP. I first thought it was a friend, so that they didn't have to pay for that at each house - wouldn't that be nice!!

I'm supposed to hear today - wish us luck!!!!