Jody Zink Realtor

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Money Mistakes Buyers Make: #1.

by Jody Zink, Realtor on August 18th, 2010

Moving Money Around.

Lenders are concerned about the source of funds for your down payment and closing costs. You’ll likely be asked to show proof liquid assets, including checking and saving accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

If you’ve moved money between accounts during that time, there may be large deposits and withdrawals in some of them. The mortgage underwriter may require a paper trail of all withdrawals and deposits making you 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… and don’t change banks, either.

From → Buyers