We are trying to get pre-qualified by Wells Fargo for a new home in Eastwood Village. For those of you that are familiar with the process of buying, how much money do we really need to present to IP after being pre-qualified and entered onto the list? What about the lender (Wells Fargo)?
How much cash is really needed when purchasing new home from Irvine Pacific?
- Thread starter Shiba123
- Start date
Perspective
Well-known member
Shiba123 said:
In general, you can easily qualify for a jumbo mortgage loan if you have 20% cash to put down and have twelve months' reserves. You can use retirement savings, but they'll discount the values up to 35%.
Echoing what others have said.
20% down. PLUS closing cost (conservatively about 1% of home price)
12 months of reserves (can be retirement funds which are discounted up to 50% - so if you have 100K in an IRA/401K - they look at it as "50K in reserves")
And if you are buying new, general rule is 10%-15% of purchase price for upgrades.
Floors, lighting etc
20% down. PLUS closing cost (conservatively about 1% of home price)
12 months of reserves (can be retirement funds which are discounted up to 50% - so if you have 100K in an IRA/401K - they look at it as "50K in reserves")
And if you are buying new, general rule is 10%-15% of purchase price for upgrades.
Floors, lighting etc
When does anything (and amount like a deposit?) need to be paid to IP? I'm asking because we are planning to sell our current home to fund the new home. We can get pre-qualified with the 20% down + closing cost + reserves, but ideally we don't want to touch any of that money. We just want to know when exactly we need to sell our home and if we need to rent an apartment at all.
irvinehomeowner
Well-known member
These are all questions only the broker at IP can answer as it varies by lender.
So roughly speaking, in terms of when items are paid. You give the builder a deposit when you pick your house out and go into contract with them. Amount isn't some absurd amount and than you typically pay 50% for all of the various options, although IIRC, there are certain options where you pay 100% deposit. Rest of the funds are due at COE and in reality, that is when you need to have whatever source of funds you truly plan on using.Shiba123 said:
You obviously would need to qualify non-contingent (since it sounds like you are wanting to qualify non-contingent but ultimately use proceeds from your purchase vs. actual cash you have). Might be some things you need to notify the bank of, but shouldn't have a big deal. TIC is really just going to be concerned that you can qualify as if you keep your home (meaning you have downpayment + reserves needed as well as income requirements, etc, which ensure that you can hit the needed ratio's of the lender to carry your other house while having this mortgage).
If you are planning on doing contingent, than the builders typically have kind of set standards they want you to do (as in...list your house by this point, want you to be pending at a certain milestone and than close of escrow by x point). I think ultimately they tend to be a little flexible on that sort of stuff, but as a contingent, you'd be further down the waiting list.
Perspective
Well-known member
You can walk into any IP sales office of a neighborhood you're interested in, and the sales person can answer every question you've posed. There's no mystery here.
If you want mystery, ask the sales folk how the pre-qual list works. You will not receive legit answers for this question...
If you want mystery, ask the sales folk how the pre-qual list works. You will not receive legit answers for this question...
Irvine Dream
New member
To me it looks more like for some reason you don't want to show all the money you have to the lender/IP. If that is the case there is no point to it. There are no negotiation with IP on price and you have to buy at whatever price they want to sell.Shiba123 said:
On the other hand if you are trying to get money from others to show that you have the needed money/reserve then your questions make some sense but you are better off getting the answer to those from the lender directly.
Shiba123 said:
At the initial signing when you secure a home, there's your first deposit payment. Not sure what's the exact amount at your particular track, but usually around $20k-$40k for finance buyer. All cash buyer requires $100k to $200k as initial deposit.
At the time to chose stage one upgrades, that's the structural upgrades for things like conservatory, room options, shower instead of tube etc, buyer are required to pay 100% of the cost of these option at this time. You'll need to find out the exact cost of these options from the builder since different home will have different price tag.
At all subsequent appoint at design center to choose stage two, three, and four options, buyer are required to put down 50% of the cost of selected options at each stage. The amount of money you'll need to pay up all depends on how much upgrades you are going to do through builder.
However, all these initial deposit payments are part of your 20% down. Its just that with all these upgrades, it raise the price of the home and hence increase the dollar amount of your 20% down payment.