When a lender’s underwriter reviews your Florida mortgage package for approval, one of the things they’re going to do is pay special attention to source of funds for your down payment and closing costs.
You will absolutely be asked to provide statements for the last two or three months on any of the financial accounts you listed on your original Florida home loan application.
These include but are not limited to:
- checking accounts
- saving accounts
- certificates of deposit
- stock statements
- retirement accounts
Keep Financial Account Transfers to a Minimum
If you’re in the beginning stages of applying for your Florida home loan, then do yourself a favor. Take account of where the money you’ve saved up for your down payment and closing costs is right now. Then, leave it right there.
Please listen to me on this: If for some reason you have a practice of transferring cash between accounts on a regular, then stop. Or at the very least, keep transfers to a minimum. The main thing underwriters need to see is that you’re stable and pose little risk of defaulting on your Florida home loan.
If you have been transferring cash all over the place during the last few months, then at least some of your statements will show some major deposits and withdrawals. If this occurs, the lender’s underwriter will generally need you to supply a full paper account of all the withdrawals and deposits you have made during that time period.
As an example, you may be asked to provide canceled checks, deposit invoices, and other potentially hard to access information, which can lead to you having a romantic evening with just you, perhaps your significant other, and the cluttered mess of a secretary or filing cabinet your financial records usually land in. Awe, come on. I’m just kidding. Unless of course you do have a cluttered mess of a filing cabinet. In that case, have fun!
At this point, you might become a bit irritated at your Florida home loan specialist or lender, but please remember: we’re doing our jobs as we are directed to by law.
If the recent financial market issues have taught us anything, it is the significance of guaranteeing quality control, borrowers’ ability to pay, and doing everything necessary to eliminate fraud. Besides, the days of “stated income” loans are all but over, and underwriters today are going to want complete documentation regarding the source of all funds you list as assets on your 1003 loan application.
In short, applying for a Florida home loan can be very exciting, and there are some things you must know before moving forward. You’ve learned about one of the big ones in this post. So remember, keep your money where it is for the time being – even if you have accounts at multiple banks, and your records are a mess.
Once your loan clears, they’ll be plenty of time for that night with you, your filing system, some soulful music, and your beverage of choice!
Photo Credit: guuleed on Flickr.com
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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