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95 votes

Why do sellers care about down payments?

They want to gauge the chance of a successful sale. There's nothing quite as frustrating when selling and moving to a new home as getting into escrow, doing all the paperwork, crossing off all the ...
Rocky's user avatar
  • 24k
92 votes

Buy house with down payment, no loan, sell instantly

Wholesaling is basically the act of standing in at an auction and "buying" a home on behalf of a yet-to-be-determined buyer. You put a down payment on the purchase, and then, you go out, find that ...
dwizum's user avatar
  • 17k
76 votes
Accepted

How is making a down payment different from getting a smaller loan?

They are no different, but the language you are using is different than what is typical. If you are buying a $100k thing (perhaps a house), and you only take an $80k loan, then you are necessarily ...
Ben Miller's user avatar
  • 116k
48 votes

What happens if you can't pay at an auction?

I grew up working in auction houses in a rural area - family owned on most of them. I was young - so I was not the auctioneer, nor the management staff. But I did see how things work and I did ...
blankip's user avatar
  • 4,727
42 votes

Credit score and financing new car

CC debt is My Hair Is On Fire!! debt, because the interest rate is so high. So... yes, you should pay that off first (unless you like subsidizing my 1.5% Cash Back Rewards and "Fat Cat Bankers" while ...
RonJohn's user avatar
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32 votes
Accepted

What happens if you can't pay at an auction?

It depends on the circumstances of the sale, the jurisdiction, and the auctioneer. It also depends somewhat on when or how the buyer backs out. Skip to the very bottom if you just want an answer to ...
dwizum's user avatar
  • 17k
23 votes

How is making a down payment different from getting a smaller loan?

Because if you make a down payment, you've got skin in the game. Think about a few scenarios: If you make a down payment and you decide to walk away, you are in trouble with the bank, but you have ...
manassehkatz-Moving 2 Codidact's user avatar
22 votes

Do monthly payments decrease on a mortgage later in the loan?

The typical home mortgage is amortized to give you a consistent payment amount through the duration of the loan. What you'll see is that each month a greater portion of your payment goes to principal ...
Hart CO's user avatar
  • 70.5k
20 votes

Credit score and financing new car

You're asking several related questions - about credit scores, how to use cash, and how to buy a vehicle. If we break them all down and start with what to do with your $5k in cash - it makes sense to ...
dwizum's user avatar
  • 17k
20 votes

Why do sellers care about down payments?

If the appraisal is less than the purchase price and the down payment is small, the bank might not approve the mortgage.
Charles Fox's user avatar
  • 2,779
18 votes

Buy house with down payment, no loan, sell instantly

As mentioned in the comments, the book "Rich Dad Poor Dad" by Robert Kiyosaki is not undisputed among experts. Its advise should be taken with a grain of salt. When you want to participate in a real ...
Philipp's user avatar
  • 23.9k
14 votes

What happens if you can't pay at an auction?

As @dwizum points out in their answer it will depend on the circumstance of the sale and the jurisdiction. Aside from the down payment, the auctioneer will typically require evidence that you have ...
Charles E. Grant's user avatar
12 votes
Accepted

When should I use Layaway vs. saving up for an item?

Are there any advantages to layaway? There are two main advantages. First, when you pay the initial deposit the seller reserves the item for you at a given price. This is helpful with unique ...
Nosrac's user avatar
  • 6,839
11 votes

Buy house with down payment, no loan, sell instantly

This answer is here more to support what others have already said, so I will skip the part where I answer the question and go right to the part they don't tell you about. Buying a house at auction is ...
Kai Qing's user avatar
  • 1,217
10 votes

Roth 401k Contribution limits reset on job change

Rollovers are different than Contributions. You can rollover any amount as often as you want in every year, as it is basically just a transfer to an equivalent ('already taxed retirement') account. ...
Aganju's user avatar
  • 37.7k
10 votes

Credit score and financing new car

Do not buy a car on credit. Ever. The fact that you have credit card debt makes it an even worse idea, but there are just so many reasons you should never buy a car on credit. For $5000 you can get a ...
R.. GitHub STOP HELPING ICE's user avatar
10 votes

Why do sellers care about down payments?

A personal story, previously shared in an answer to another question: For the last house I sold, the buyer was doing a no-money-down mortgage and had no money for a down payment. He was even ...
Ben Miller's user avatar
  • 116k
10 votes

Should one always put 20% down?

the house's appreciation, if any, is unlikely to keep pace with average market returns is ENTIRELY the wrong way to look at this. The house's value will appreciate (or depreciate) based on its ...
Ben Voigt's user avatar
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9 votes
Accepted

How do car dealerships benefit from $0 down bad credit car sales?

There are a few reason this is different than the sub-prime mortgage crisis, and why doing this can be profitable: Interest rates for these vehicles is commonly far, far higher than 'regular' car ...
Grade 'Eh' Bacon's user avatar
9 votes

How much share should I get in our property

You need a neutral outside expert who will look at all the numbers, and then render a decision with all the numbers explained. The three current owners will have to agree that the split the expert ...
mhoran_psprep's user avatar
9 votes

How much share should I get in our property

First, congratulations on the nice capital gain. (From now on, every time someone asks on here "What to invest in?!" I will send them to this question!) The three of you need to - literally ...
Fattie's user avatar
  • 13.8k
9 votes
Accepted

Can a 20% down payment actually hurt you?

If you are offering 20% ($40k) down then does the bank/assessor only look for $160k value in the house? The appraiser is tasked with determining the current value of a property, your down payment ...
Hart CO's user avatar
  • 70.5k
8 votes

1/3 owner of home, can I use my part for down payment for mortgage and buy out remaining 2/3?

Absolutely. Your situation isn’t as common to a bank as a new purchase, but it’s also not uncommon. People die all the time leaving a house to more than one heir. If you go to a bank, they will likely ...
JTP - Apologise to Monica's user avatar
8 votes

Why do sellers care about down payments?

Because, ultimately, the seller is likely going to have multiple offers for the house and will have to decide which to go with. In that situation, one of the most important weighing factors is: how ...
Kevin's user avatar
  • 2,640
7 votes
Accepted

Receiving $30k from mother for house down payment

Your mother can give you $14k and your wife $14k (every year) without creating a gift-tax filing requirement, anything in excess of that and she will have to file form 709 with her tax return, but she ...
Hart CO's user avatar
  • 70.5k
7 votes
Accepted

Roth 401k Contribution limits reset on job change

if I roll over existing Roth 401k to Roth IRA, will it allow me to put a full 18k in the new Roth 401k from the new employer? No. The contribution limit for one year is $18k for all employee ...
D Stanley's user avatar
  • 136k
7 votes
Accepted

Contribute extra to companies 401k with the intention of withdrawing it for house down payment?

There is no exception for traditional 401(k) withdrawal limitations for first time home purchases; if you read that somewhere, you read incorrectly. If you take a distribution from your traditional ...
Joe's user avatar
  • 35.8k
7 votes

Do monthly payments decrease on a mortgage later in the loan?

Not typically. The payment amount on a mortgage is typically fixed until the principal balance is paid off. If you make extra payments after origination, that payment reduces the amount of principal ...
D Stanley's user avatar
  • 136k
7 votes

Why don't most unfurnished rentals in the US accept the option of paying rent upfront, instead of doing credit checks?

"An individual or a property management company makes you jump through hoops and prove income, provide a credit report, undergo a background check etc." for a couple purposes: Risk ...
arcyqwerty's user avatar
  • 1,271
6 votes

Do jumbo loan limits apply to the amount borrowed or to the property price? Can I avoid a jumbo with a higher down payment?

The loan is the loan, the down payment is not part of the loan. The principle amount owed on the loan at the beginning of the loan is the amount of the loan. If your loan amount is $390,000 then ...
quid's user avatar
  • 49k

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