This is not public knowledge, but if you don’t know…
July 29th, 2009 categories: Phoenix real estate
I wanted to write about it, because I witnessed it again.
A buyer with an excellent credit score received a letter of denial from an underwriter, because he didn’t know about it.
Well, how would you know?
It is about the mattress money. The gift. The money that we have been saving.. just not necessarily in the bank account.
When it comes to home financing, the guidelines are really strict now.When you apply for a loan, and you already have the dream home under contract there must be a certain amount in your bank account- (the amount depends on your future mortgage payment) -and this will be one of the lender’s conditions to underwrite the loan. In most cases it is not the additional money that creates the issue, but WHERE IS CAME FROM AND- what sometimes may be essential- HOW LONG IT HAS BEEN IN YOUR ACCOUNT.
They simple want to make sure there is no money laundering or another investor involved in your home purchase if this is a program that does not allow it. So in order to avoid any problems during the purchase process it is important to prepare for it ahead of time, and talk to a good loan officer few months before a home purchase.
If you need to deposit additional money be ready to document the source, and make sure that it is deposited at least 2 months before applying for a loan, so it is SEASONED.
If it is not- the lender can tell you: come back later.
Than the home you already imagined yourself living in- may be gone.
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