Don’t Move Money Around
When a Lender reviews your loan package for approval, they are concerned with the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last couple of 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 retirement accounts.
Beware; if you move money between accounts during your loan approval your 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.
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 Lender. Oh…don’t change banks, either.
No Major Purchase of Any Kind
Do not make any major purchase that will create debt of any kind. This includes furniture, appliances, electronic equipment, jewellery, vacations, expensive weddings…and automobiles, of course.
*The information contained on this page is for information purposes only and does not constitute as legal advice. Although, drawn from sources deemed to be reliable, the accuracy and completeness of the information is not guaranteed. Diane Luu or Legend Real Estate Group does not assume any responsibility or liability. Any distribution, use or copying of the content on this page is prohibited.