We're saving for our mortgage right now. Looking to save up 5%, the house will be approx $190,000. I'm confused about how the whole mortage thing works. The builder wants $1000 deposit when the contract is written, and then the remaining 5% of the purchase price (189,000 x 5% = $9450) once the mortgage is approved, and then the balance of the money upon closing. To get a mortgage we would have to give the bank 5% for the downpayment ($9500). Do the builder deposit costs ($9450) come out of the mortgage? So if that's the case will we be paying a mortgage during the 5-6 months the house is being built? How does it all work? Help!
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