So how much Down Payment do you really need in 2009 to get the home?

Yes, you will hear that you can get into a house with as little as 3-5% down from the Fianance Business but what does a buyer really need to buy a home in the South Bay and not get your offer rejected!

Well the current market place depends upon what neighborhood and type of home you are looking to buy.

Here are some examples of the current kinds of Buyers that are successful in getting to purchase the home they want.

I am finding that my buyers in the Palos Verdes Peninsula that are shopping foreclosures or 1st time buyer homes are coming up against multiple offers from other buyers and the buyers with the largest down payments are getting accepted.

I am seeing many investors coming into the market now and they are offering all cash or 50% down offers to the Seller. These are the first choice of the Sellers because they know with that kind of down payment that the loan will be guaranteed to be approved and they can close in short amount of time, like 30 days or 45 days.

Sellers are scared that the lenders are not going to qualify their buyers with small down payments because the appraisals are very low in the current market.

Thus the bigger down payment the easier it is for the home to appraise also.

Ok so that is not to discourage the new buyers, I am seeing some wonderful properties that are being sold due to a job transfer or trust sale that are not the lowest prices in the neighborhood accepting more smaller down payments. As long as you are not in a multiple offer situation and the seller will be more willing to work with you.

I saw properties in Torrance, South,Redondo Beach and Lomita on the Palos Verdes borders still receiving multiple offers if they are the lowest price with large down payments 50%..also that means they are going in as is condition with the buyer expected to make all the repairs.

Steer away from the foreclosure/fixer market if you are a first time buyer. Shop for a home that is in good condition with a Seller that is willing to get you a home protection warranty for the year and has a history of repairs supplied to you by the current seller.

That way you will not be scrapping together a down payment stretching your budget to get into a property and then finding out you need to do work that was not in your budget once you get into a property. No one likes surprises and a home with a seller available that you can talk to is a much better value in the long run.

It is important that you find a lender to qualify you first then he can call me and tell me what price range you are looking in.

Being a first time buyer there is a lot to learn and I specialize in first time buyers. The market conditions are such that the size of the down payment will make a difference in the types of homes that you will be successful in getting an offer to purchase accepted.
Example, I am finding that FHA is having multiple offers now so they are usually choosing the buyer with the larger down payment.

Foreclosures are more difficult unless in a starter neighborhood. The better the neighborhood the higher the investors down payments are getting them accepted.
I sold a home in Lomita where we had 13 offers and 4 of the offers were over 50% down so my client ended up getting picked to buyer the home because of his terms and high down payment.
This is a common situation in today's market place.

If you are in a starter neighborhood and in your price range you should be ok with a smaller down payment 5-10% but the more down payment the better in getting the Seller to choose your offer because the Seller's knows the larger the down payment the better chance the bank will approve the buyer.
It really depends on the area but I want you to be prepared when shopping for a home and don't be disappointed if you lose your first offer. In this business for over 25 years I have never seen my buyer lose a home and not end up with an even better home and better price than the ones they lost.

That is what happens to my clients at least..Work with an experienced professional,not just a friend's referral after all this is the biggest investment you are going to make and you need an experienced professional so you do not make a bad investment in the wrong floorplan, neighborhood or in some areas the resale will be important as to some culutre issues as feng shui for an examle. Some homes are just considered bad luck in some cultures ie...So to make sure that the sun does not set on your dream house without you in amke sure you know how experienced your realtor is!

MARY CRISTIANO THOMAS
Cell:310-946-2205
E-Mail: Mthomas@remaxpv.com