An often overlooked way to delay a loan closing

By
Real Estate Agent with Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia 0225218019

Mortgage lenders often tell buyers not to apply for any loans, such as a car loan or a new credit card during the few weeks between loan approval and the closing. 

 

Buyers also need to avoid making large deposits into their checking or savings account. 

When I was preparing to move back to the Williamsburg area from Florida in 2015, I sold a ring.  Before I deposited the entire check I consulted with my mortgage banker and she confirmed that a deposit of that amount might raise a red flag with the lender.

 

If you are a buyer with a pending closing on a property, check with your mortgage professional before making any large deposits.

Posted by

Sybil Campbell, REALTOR®, ABR, SFR, SRES

Long and Foster, REALTORS®

(757) 876-0140

WHATEVER THE DIRECTION SYBIL CAN HELP YOU LOCATE THE HOME OF YOUR DREAMS

sybil.realestate@gmail.com

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Rainmaker
1,352,277
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Yes, and if you do sell something and thus have a large chunk of money, you'd better be sure you have complete documentation showing where that money came from.

Feb 12, 2018 09:48 AM #1
Rainmaker
2,218,541
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

This sourcing of money can make one crazy, Sybil. I had a client who pulled out $100 in cash from a credit union account and put it into his checking account as cash... almost delayed our closing over $100 stinkin' dollars.

Feb 12, 2018 10:18 AM #2
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

My lender doesn't let sourced funds slow things up.  I've had buyers make large deposits, but provide paper trails for the the date of the purchase, and date of the sale.  Recently had a girl who needed the funds for her movers, sell one of her many cars.  She had the documents from the purchase, the bill of sale from the closing, made the large deposit and provided underwriting the "paper trail" for where the funds came from and no delay was needed.  I would however agree, always ask your lender before doing it.

Feb 12, 2018 10:23 AM #3
Rainmaker
2,455,432
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Excellent point that most people do not think about Sybil when they are looking to make that purchase of a home.

 

Feb 12, 2018 11:01 AM #4
Rainmaker
1,428,890
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

You are right Marte Cliff.

Feb 12, 2018 11:11 AM #5
Rainmaker
1,428,890
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Nina Hollander, that seems a little absurd doens't it?  I mean it was only $100!

Feb 12, 2018 11:12 AM #6
Rainmaker
1,428,890
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Tammy Lankford, Yes it is better to be safe than sorry!

Feb 12, 2018 11:13 AM #7
Rainmaker
1,428,890
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Thanks Will.

Feb 12, 2018 11:13 AM #8
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

That is absolutely true, I have had more than a few closings delayed while money was verified or cured in the bank account..

Feb 13, 2018 10:17 PM #9
Rainmaker
1,428,890
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Oh the thing they don't teach in real estate school, Debbie.

Feb 14, 2018 05:49 AM #10
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Rainmaker
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Sybil Campbell

REALTOR® ABR, SFR, SRES Williamsburg, Virginia
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