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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.
Should You Change Jobs?
For most people, changing employers will not really affect
your ability to qualify for a mortgage loan, especially if
you are going to be earning more money. For some homebuyers,
however, the effects of changing jobs can be disastrous to
your loan application.
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