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Seasoning Funds for a purchase

By Zach Boyle

Mortgage and Lending with Advisors Mortgage Group, L.L.C. NMLS 56123

May 19, 2010 05:37 PM

This is the biggest issue that faces First Time Home Buyers in our area. There are many people working off the books and what looks like an easy deal can turn into a nightmare fast if the downpayment is put down without someone looking at the account they are using to check for large deposits.

To avoid this issue you should have your buyers go over their bank statements with their loan officer to make sure that you won't have an issue. If there is a deposit that is large and not consistant with their income you have to show where it came fr

There are some loopholes as with anything but I can't really go into that, just like there is still a bank out there that you can close FHA loans without adding in the unreimbursed business expenses when they are a straight W2 employee.

Call us if you ever get stuck: 516.612.7000

Zach Boyle

NWReverse.com

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Richard Dolbeare

Inactive - Wailuku, HI

Living the Hawaii Lifestyle

I've run into the seasoning issue but fortunately it only delayed closing by a month.

May 19, 2010 05:45 PM

Fred Cope

Reliant Realty in Nashville, TN - Nashville, TN

Looking For Homes With A Smile

Zach,

If a loan officer is worth his/her salt, there will be no need to ask him/her to look for unusual activity in a bank statement. IF NOT, he/she should get out of the business, and any REALTOR® that can spell "closing" will run from that LO.

There is much more to scrutinize than large deposits, and I'd start with a comparison of monthly deposits to claimed income. We are talking about reviewing at least two months statements on each/every bank account reported on the 1003 Application. Are there NSF charges? Unusual & unexplained deposits? Do deposits in one account match withdrawals from another? Are GIFT FUNDS present? Are they disclosed and documented?

IF YOUR LO turns paperwork over to a processor without reviewing it personally, get ready--you will get bit. Twenty-five years as an LO, taught me to READ EVERYTHING FOR MYSELF, ASSUME NOTHING, THINK AHEAD, COMMUNICATE WITH THE REALTOR®, and do your best impersonation of the underwriter. Remember: "Plan for the worst while hoping for the best."

Good Luck and thanks for the post.

May 19, 2010 05:58 PM

Elite Home Sales Team

Elite Home Sales Team OC - Corona del Mar, CA

A Tenacious and Skilled Real Estate Team

It is much more difficult as the regulations change and the full doc. loans are the rage.

May 19, 2010 07:26 PM

Randy Ostrander

Lake and Lodge Realty LLC - Big Rapids, MI

Real Estate Broker, Serving Big Rapids and West Central MI

I have had seasoning issues come upo a lot lately also. Most people get mad at their lender but mine have all been underwriter issues so even the lender has no choice. Seems like the hoops to jump through have tripled recently.

May 19, 2010 10:36 PM

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