Need a mortgage now?...Better bring a boatload of money to the closing...

http://money.cnn.com/2008/07/15/real_estate/Need_mortgage_bring_money/index.htm?postversion=2008071809

Need a mortgage now? Bring lots of cash

Between higher fees and and larger down payment requirements, buyers have to pony up more money than ever these days just to land a loan.



By Les Christie, CNNMoney.com staff writer
Last Updated: July 18, 2008: 9:28 AM EDT


NEW YORK (CNNMoney.com) -- Are you ready to buy a house in this crazy market? Better bring a boatload of money to the closing. In a brutal real estate market where all the players want to hedge against the tremendous risks, down payment requirements and up-front fees have soared, shutting many potential home buyers out of the market. "I have as many people calling me for financing as ever," said George Hanzimanolis, a Pennsylvania mortgage broker, "but I'm putting less than half of them into loans."

That's happening all over the country, and may slow the housing market's recovery. Indeed, in a Realtor.com survey released today, potential home buyers said high down payments were the second biggest obstacle, after high home prices, to buying a home. These days, home buyers almost always have to make a substantial down payment, at least 5%, according to Rich Wordman, president of the Florida Association of Mortgage Brokers. The days of no-down loans are over.

In deeply declining markets, lenders are reluctant to issue loans unless borrowers put at least 10% down, he said. JP Morgan Chase (JPM, Fortune 500), for instance, now asks for a minimum of 10% down in most markets, according to a spokesman, and for 20% in hard-hit areas. In Reno, Nevada, which has been devastated by the housing crisis, the bank requires 25%.


snip

And we should probably return to the days when
20% down was the standard with less down being
a rare exception.

Tesha

in cash at closing, AND we had to prove that NONE of it was borrowed...and banks only counted ONE income..Our beautiful nearly-new 4 level home cost us $39,900.00...But back then they wanted to make sure you could AFFORD the loan..