Buying/Selling house question - how much cash?

[pantherlj]

We are going to put our house on the market and buy in a town about 15 miles away. We have never sold a house - we bought this house new about 15 years ago.

How much cash should I anticipate needing at closing? Let's assume these numbers because they should make the math easy.

Sell current house for $200,000 with current mortgage balance at $100,000. New home will be $300,000.


Anything else I need to think about or know about, please share!

Thanks

 

[tink_n_pooh]

There are so many variables and unknowns that it makes this question pretty much impossible to answer. Your best bet will be to talk to your mortgage lender, real estate agent, and attorney.

What kind of mortgage are you getting? Are you putting any money down? Who will be responsible for closing costs? And then there is all the really fun stuff that you might not find out to the very last minute... like despite already doing a title search they just found out that the seller has $60,000+ worth of liens on the house Or the mortgage company may decide at the last minute that they are requiring X amount down

 

[havaneselover]

Do you have a realtor and a mortgage person? Your realtor should be able to give you an accurate estimate of selling costs and the mortgage person should let you know closing costs on the purchase. This varies so much from state to state that I'm not sure you'll get a helpful answer on here.

I'm actually in the process of selling an buying and on top of my realtor's 5% commission (split between the buyer's agent and my agent), I am looking at another $2,000 of miscellaneous fees (but I'm in an HOA so that includes HOA docs). On the buying side, I figure closing costs are about 2-3% of the purchase price.

 

[pantherlj]

Thanks for the input so far. Haven't put the house on the market yet, only thing I have done is get pre approval for mortgage amount so I have no answers, just lots of questions

I guess another question would be what should I expect to pay in cash versus what I can roll up into the new mortgage?

Just trying to get some ball park numbers

 

[Trish.Glenn]

A good real estate agent can be worth their weight in gold. he or she may save you money and may help you make more money on selling your house.
Ps I am NOT an agent lol

 

[havaneselover]

Thanks for the input so far. Haven't put the house on the market yet, only thing I have done is get pre approval for mortgage amount so I have no answers, just lots of questions

I guess another question would be what should I expect to pay in cash versus what I can roll up into the new mortgage?

Just trying to get some ball park numbers

Well you can always ask the sellers of the house you are purchasing to give you a credit toward closing costs (so if they're asking $300K you can offer $295K + $5k for closing costs for a net of $290K). But your appraisal has to show the house is worth $295K, not the $290K you are really paying for it.

I think to avoid PMI or a second you are going to need 20% down + closing costs whether you pay for them out of pocket or get a credit from the seller.

 

[tink_n_pooh]

Thanks for the input so far. Haven't put the house on the market yet, only thing I have done is get pre approval for mortgage amount so I have no answers, just lots of questions

I guess another question would be what should I expect to pay in cash versus what I can roll up into the new mortgage?

Just trying to get some ball park numbers

That is going to depend on the mortgage lender. It is possible to roll everything into the mortgage but not possible in all cases, KWIM?

Like a PP said, to avoid PMI you will probably need a % down, in the area of 20%

 

[mikehn]

How much cash you need at closing is really a question for your mortgage lender. Once your mortgage lender completes the paperwork (HUD-1 form), you will have a pretty good figure, plus or minus, depending on a few things.