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Other Things to Avoid Before Purchasing
a Home
Don’t 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.
Oh…don’t change
banks, either.
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