Don't Screw Up Your Loan With Untraceable Deposits

Reblogger
Real Estate Agent with Long Realty SA577339000

I have had this unfortunate circumstance happen to clients in the past. Even though you take the time to warn them of the possible problems they insist on doing things thier way. "No one will find out"  Lesson learned.

Original content by Sally Dunbar DRE# 00809499

Dang! It just happened again! My buyer's daughter transferred $20K into their account, because they're really buying the condo for the daughter with her money. (The daughter has bad credit, but a wad of money, so Mom and Dad are making the purchase for her). 

Loan paper trails can drive you crazyNow we need to show proof of where the money came from - which means copies of the original check, copies of the cashed check, copies of her birth certificate, marriage license, and dog's vaccination.  OK... I jest about the last 3, but DON'T MAKE DEPOSITS WITHOUT SPEAKING TO YOUR LENDER ABOUT THE CONSEQUENCES TO YOUR LOAN. Federal guidelines mandate we need a paper trail for every cent of money that goes through your bank account.

Getting these verifications take time... time that can throw a serious wrench into your loan process.

So what do you do, if someone else is giving you money for your down payment?

1. Be sure your lender approves the amount.

2. Provide a gift letter, promising to put up the money as a gift.

3. Get a cashiers check written directly to the title company.

4. Wait until you have loan approval, and have signed your loan documents.

5. THEN deposit your cashier's check directly into the title company. (check with your local customs, as not all states handle title and escrow the way we do here in Fair Oaks).

You do this, and you will avoid a bundle of paperwork that can drive you crazy.  Just make sure you have run this by your lender... then do as they say!

OR... go buy a lottery ticket tonight, then pay cash!

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For homes in the Fair Oaks or Sacramento Area of California.... I'm your gal. I'm occasionally knowledgable, periodically humorous, and always willing to tell you everything I know.  What more could you ask for?

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Sally Dunbar, 30 year Broker Associate, Lyon Real Estate, Fair Oaks, (916) 535-0356, SDunbar@GoLyon.com

Posted by

Vera Wallace Long Realty

12080 N Dove Mnt Blvd

Marana, AZ 85658

vwallace@longrealty.com

http://vwallace.longrealty.com/

520 918 5730

Comments (1)

Anonymous
martinnitsim
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Jul 25, 2012 11:29 AM
#1