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THINGS TO AVOID BEFORE BUYING A HOME
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.
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
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.