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Oct 03

Mortgage Helpful Hint #2

Mortgage Application and Cash Deposits

I would take cash in a brown paper bag, but the Feds won’t allow that in a real estate transaction involving a mortgage.  I want this to be as easy for you as possible so this Helpful Hint tries to unravel the mystery behind sourcing funds needed to close the deal.

We must verify were EVERY PENNY comes from used to close a transaction.

Money used for Down Payment, Closing Costs and setting up the Escrow Account MUST be sourced.  It cannot fall from the sky!

Do not deposit anything in your bank accounts without support documentation!!!

NO CASH DEPOSITS  

Cash is very difficult to source!  So are transfers from one account to another if we do not have copies of both accounts.  Every online transfer must show the money being taken from one account and going into the other.  Try NOT to have a bunch of transfers back and forth, the less activity the easier it is to sort out and understand.  If you can’t explain it to me then I can’t explain it to the underwriter…

Best practice is discuss it before doing it, call me BEFORE making a deposit that doesn’t come from regular payroll deposits.  Most banking transactions are very easy to document on the front end, not so much after they completed, especially if they documented incorrectly.

Keep copies of everything.  Checks, bank statements, pay stubs, deposit slips, anything that involves money, keep a copy!  Get a file folder or large envelope and keep everything like this in one place.  The underwriter is going to ask for a copy of SOMETHING.

My goal in sharing these Helpful Hints is to make your experience as pleasant as possible.

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