house deposit

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starzzzz Posts: 1123
hey guys, question about getting house deposit together. me and h2b are wanting to buy soon like by the summer to try take advantage of the house prices dropping. but as im sure you know the deposit needed is now 20% which is at least 40k realistically. whats the best way of approaching this? should we borrow from credit union, take a bank loan or wait it out? what do you all think? posting in house and home also
babybambino Posts: 940
Well the bank won't allow you to borrow the money for your deposit you're supposed to save it. If you take out a loan with another bank they will be able to do a search and fid this out. They may not find out if you take out a loan with the credit union but it is not advisable. You will own NO equity in your house and if the house price drops you will owe more than the house is worth. My advice is cut back on your spending and save as much as you can towards a deposit
gottabfp Posts: 5641
we got 100 percent mortgage when they were going, then borrowed money to furnish. to be hoest if i had my time back again i would have saved up the money for the deposit. while we are not at a loss yet with the house, we are only very close to breaking even.
blissful2b Posts: 1555
i don't think the banks can check the credit union, but in this climate, i certainly wouldn't be borrowing 40k for a house deposit when prices are still dropping. you're best bet would be to save it up or go for a cheaper house.