Buying a house
#31
11-26-2012, 08:43 PM
One thing that's kind of bugging me about part of the loan process is how they scrutinize your bank account. Did you know that if you save for a while and get enough cash to cover closing costs together that you can't use it? You need to use a check, debit or a money order so that they will have a paper trail of where that money came from. Ok, no problem, I will just deposit the saved cash and use a check. Nope, can't do that. In fact, it is likely that you will be denied for a loan if you have a large deposit in your bank account and cannot prove where that money came from. So basically if you save money then go to deposit that money then you are a liar and not worthy of a loan since you don't have a record of where every dollar came from. So now I have to use my saved cash for my daily spending and use what's in my bank account for the closing costs. I can't deposit the cash until after closing (up to 60 days from today). I'm just glad that I don't have any big bills so I can cover the closing costs with whats in the bank.
That is tell the bank your folks gifted you $5,000 and you want to use that for closing.
See what the bank says. If they say you can do that, then here is what you do.
Give parents 5K cash
they write you a check for 5K with a gift letter
you give cash or check to bank with gift letter
Its kind of like money laundering...... But not really
The bank needs to see where the monies came from unless they have been in an account for 60 days or more.
it sucks but thats the way it goes... Just make sure whoever writes you a gift letter has the money to cover in thier account for at least 60 days.
Last edited by VEETEN; 11-26-2012 at 08:50 PM.
#32
11-27-2012, 08:58 AM
Join Date: Apr 2008
Location: Lee County, North Carolina
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A guy at my work that is close to my age got his first house less than a year ago. He was in a similar situation and almost didn't get his mortgage approved because of what he did. His dad gave him a couple/few thousand dollars to help with his $7000 worth of closing costs and he said that he would have been better off if he had never deposited that money because it was a huge hassle. The bank asked him repeatedly if it was a loan and wanted him (and his dad) to prove where the money came from.
I'll be alright with how I'm doing it now though because I can cover the closing costs with whats in the bank, I'm going to get a few more paychecks before closing and I have enough saved to live off for the next month and a half since I only have a couple small bills that I have to pay.
I'll be alright with how I'm doing it now though because I can cover the closing costs with whats in the bank, I'm going to get a few more paychecks before closing and I have enough saved to live off for the next month and a half since I only have a couple small bills that I have to pay.