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Contributor
SeattleKC
Posts: 12
Registered: ‎04-26-2012
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BECU Mortgage

My fiance and I are trying to buy our first home. We applied for pre-approval at BECU. They required 10% down, I thought they would go as low as 5%.

 

Does anyone know anything about this?

 

Of course I can ask them, in the mean time, just wondering if anyone on here knows anything! 

 

Thanks!

Regular Contributor
daveskow
Posts: 91
Registered: ‎07-27-2009
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Re: BECU Mortgage

FYI - there are many lenders and programs in seattle that allow 95% if you end up needing it

Dave Skow
Eagle Home Mortgage Seattle
Regular Contributor
ethidda
Posts: 97
Registered: ‎07-11-2011
0

Re: BECU Mortgage

It also depends on the home. Some condos and co-ops require at least 10% down.

 

I assume you're getting a conventional loan, not an FHA? FHA allows as low as 3.5% down. But again, the home has to qualify for it.

 

There are lots of other variables that change how much down you need. Standard advice: shop around. If all the banks are giving you the same requirements, it's either because of the home you're trying to buy or because of you (the applicants).

Super Contributor
ardell
Posts: 345
Registered: ‎08-27-2011
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Re: BECU Mortgage

I did just see a pre-approval letter from BECU with 3% down Conventional mortgage with one 97% Conventional 1st Mortgage. I was surprised, but I think it may have to do with the buyer's qualifications and whether or not the borrower actually works at Boeing (guessing there) or are just a member of the Credit Union. I really don't know how they could do a 3% down Conventional, but I did just see a preapproval letter from them on that basis.

ARDELL DellaLoggia
Sound Realty
Contributor
SeattleKC
Posts: 12
Registered: ‎04-26-2012
0

Re: BECU Mortgage

Thanks! 

 

This was for pre-approval. So I guess when/if we find a home and put in an offer and go to get a mortgage, we can try to shop around and find one that lets us put a smaller amount down.

 

Or should we do that now, with the pre-approval?

Visitor
Gidget
Posts: 3
Registered: ‎12-22-2012
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Re: BECU Mortgage

Darn it. I wish I had known about the 3% down conventional loan with BECU earlier. I secured a 5% down conventional through Cobalt Mortgage. Would have been nice to save a few thousand early on to use later for buying a washer/dryer, custom blinds, etc. Ah well. Hopefully some new buyer will find the 3% down post early in their house shopping process and take advantage of it. :smileyhappy:

Super Contributor
ardell
Posts: 345
Registered: ‎08-27-2011

Re: BECU Mortgage

If you are going to base any home buying decision on being able to put less down, then yes...do go the preapproval route on that. To both who responded to my comment, understand I am the agent for the seller of the home in this case, and so received the preapproval with the offer. I have no knowledge of why or how BECU allowed the loan on that basis for this particular buyer. 

 

In the lending process, not everyone qualifies for the same rate and terms. Different people qualify for different programs and personal credentials including credit score determine rate. Could be the person had sufficient deposits at BECU to qualify for a lower downpayment using the deposits as collateral vs the Loan to Value ratio. 

 

Lending is one of the areas where you can't base what you can do on what your friends or someone else can do.

ARDELL DellaLoggia
Sound Realty
Contributor
ruffryder
Posts: 28
Registered: ‎11-22-2010
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Re: BECU Mortgage

[ Edited ]

Gidget wrote:

Darn it. I wish I had known about the 3% down conventional loan with BECU earlier. I secured a 5% down conventional through Cobalt Mortgage. Would have been nice to save a few thousand early on to use later for buying a washer/dryer, custom blinds, etc. Ah well. Hopefully some new buyer will find the 3% down post early in their house shopping process and take advantage of it. :smileyhappy:


Why would you have saved a few thousand by going with BECU? Do you mean by keeping the 2% difference in down payment? Also, aren't their rates higher than Cobalt Mortgage? Wouldn't you be paying more in the long run if you went with BECU?

Regular Contributor
daveskow
Posts: 91
Registered: ‎07-27-2009
0

Re: BECU Mortgage

SeattleKC -  I would advise / recommend  getting pre approved for exactly what you expect needing ...so you dont waste time  getting pre approved for  soemthing that will not help you get a loan once you locate a house

Dave Skow
Eagle Home Mortgage Seattle
Super Contributor
ardell
Posts: 345
Registered: ‎08-27-2011

Re: BECU Mortgage

[ Edited ]

I recommend that you get the preapproval at the MAX a lender will lend to you, so you know to look for a home that costs MUCH LESS than THAT. :smileyhappy:

 

Also, I often in multiple offers recommend NOT matching the preapproval to the offer. Some of my clients are buying at $650,000 even though they can afford $850,000. It has been customary for a lender to match the offer exactly, so the seller doesn't know you can afford more. But in these times when sellers are worried that the buyer may not be able to get their financing at the last minute prior to closing, best to show you qualify up to $850,000. That way the seller may choose your offer even if it is not the highest offer, because you have given them the comfort level of knowing you don't qualify AT the purchase price...to the dime. 

 

Once you have the MAX preapproval in hand, it is easy to ask the lender to lower it, much easier than to raise it, at a moment's notice when you need a new updated letter to go with your offer or counter offer.

ARDELL DellaLoggia
Sound Realty