downpayment on hom purchase

Does anyone know how to enter a downpayment for a home
purchase. I can't seem to figure it out.

When I do a transfer from my checking account (where the
$ comes from), it actually incrases the value of the home
(when it only should include the net value).

Thanks in advance for your help,
Matt

Dick
Thu Jul 03 23:23:13 CDT 2003

Ideally your asset account balance starts at $0 and is increased to the
value of the house by the transferred down payment + the received loan
principal. If you started with the asset account set to the value of the
house, one solution is to just expense the down payment Housing:Payments or
similar. (Another, should you insist, is to reduce the starting balance of
the asset account be the down payment then transfer it in.) There is no
single right answer.

"Matt G" <emailbeginsheregoogles@earthlink.net> wrote in message
news:002d01c341d4$ae95f040$a001280a@phx.gbl...
> Does anyone know how to enter a downpayment for a home
> purchase. I can't seem to figure it out.
>
> When I do a transfer from my checking account (where the
> $ comes from), it actually incrases the value of the home
> (when it only should include the net value).

Matt
Fri Jul 04 16:02:37 CDT 2003

Thanks for your help Dick. I am still a bit
confused...when I go through the "add new home wizard", it
asks me for the value of my home (which should be my
purchase price, right?). Should I enter this as my
purchase price minus my down payment? Then transfer my
down payment in?

Why I get confused is because when I process a loan
payment, it goes to 2 categories: Interest: Mortgage; and
Principal Transfer: home (the name of my home account).
This makes sense. Loan amount goes down and net value
goes up, showing my increased equity. But I can't enter
the entire down payment as equity transfer.

Money help files do not seem to be of assistance, so I
once again turn to you. Thanks again for your help.



>-----Original Message-----
>Ideally your asset account balance starts at $0 and is
increased to the
>value of the house by the transferred down payment + the
received loan
>principal. If you started with the asset account set to
the value of the
>house, one solution is to just expense the down payment
Housing:Payments or
>similar. (Another, should you insist, is to reduce the
starting balance of
>the asset account be the down payment then transfer it
in.) There is no
>single right answer.
>
>"Matt G" <emailbeginsheregoogles@earthlink.net> wrote in
message
>news:002d01c341d4$ae95f040$a001280a@phx.gbl...
>> Does anyone know how to enter a downpayment for a home
>> purchase. I can't seem to figure it out.
>>
>> When I do a transfer from my checking account (where the
>> $ comes from), it actually incrases the value of the
home
>> (when it only should include the net value).
>
>
>.
>

Dick
Fri Jul 04 18:43:03 CDT 2003

If you are going to transfer the down payment in, yes, I'd tell the wizard
the house value is purchase price less the down payment. (Or expense the
down payment against some category and not worry about the overlap between
these actions.) This is the problem with so many of the wizards. They hide
what's really going on, keep people from understanding that they don't
really need the wizards--that all the wizards do is stuff you can do
yourself, and only solve 90% of the problem in the simplest way possible.

I do not understand what you are saying about "when I process a loan
payment, it goes to 2 categories: Interest: Mortgage; and Principal
Transfer: home (the name of my home account) ... Loan amount goes down and
net value goes up, showing my increased equity." I understand the two
categories part, but let's be clear: the Principal Transfer should go to the
loan account to reduce its liability, not to the asset account. Your equity
is the difference between the asset account and the loan balance.

"Matt G googles@earthlink.net>" <emailstartshere-> wrote in message
news:5f8401c3426f$996768c0$a401280a@phx.gbl...
> Thanks for your help Dick. I am still a bit
> confused...when I go through the "add new home wizard", it
> asks me for the value of my home (which should be my
> purchase price, right?). Should I enter this as my
> purchase price minus my down payment? Then transfer my
> down payment in?
>
> Why I get confused is because when I process a loan
> payment, it goes to 2 categories: Interest: Mortgage; and
> Principal Transfer: home (the name of my home account).
> This makes sense. Loan amount goes down and net value
> goes up, showing my increased equity. But I can't enter
> the entire down payment as equity transfer.
>
> Money help files do not seem to be of assistance, so I
> once again turn to you. Thanks again for your help.