|
Donât Move Money Around
When a lender reviews your loan package
for approval, one of the things they are concerned about is the source of funds
for your down payment and closing costs. Most likely, you will be asked to
provide statements for the last two or three months on any of your liquid
assets. This includes checking accounts, savings accounts, money market funds,
certificates of deposit, stock statements, mutual funds, and even your company
401K and retirement accounts.
If you have been moving money between
accounts during that time, there may be large deposits and withdrawals in some
of them.
The mortgage underwriter (the person who
actually approves your loan) will probably require a complete paper trail of
all the withdrawals and deposits. You may be required to produce cancelled
checks, deposit receipts, and other seemingly inconsequential data, which could
get quite tedious.
Perhaps you become exasperated at your
lender, but they are only doing their job correctly. To ensure quality control
and eliminate potential fraud, it is a requirement on most loans to completely
document the source of all funds. Moving your money around, even if you are
consolidating your funds to make it "easier," could make it more
difficult for the lender to properly document.
So leave your money where it is until
you talk to a loan officer.
Ohâ¦donât change banks, either.
|
