Home Buyers: Clean Up Your Bank Accounts
Before starting home purchases, most smart buyers check their credit report, which is a great thing to do. But most do not realize that they have to create a clean bill of health for their bank accounts, too. The mortgage underwriters will require a minimum of two months bank statements for any account from which deposit, down payment of closing costs will be paid. Every single deposit and withdrawal will be scrutinized. So I advise buyers to make any cash transfers in advance. If a family member or friend is going to contribute some money towards the purchase, it needs to be in your account before this two entire months bank statement period. Most lenders allow a "gift" of up to $10,000 per person, but I strongly advise against doing it this way, because this requires extensive investigations of the gifter's bank accounts as well.
Note that all transfers of funds listed on your loan application and credit report, must occur in those bank accounts, such as: regular and/or self-emplyment income; alimony; rental receipts if you have rental property; mortgage or rent payments; car payments; credit card payments, etc.
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