401 k for DP

[Sbrooks1]

Going to take a loan against my 401 for DP and closing , have increased witholdings for 2 years to do this. Will only be about 3% of the value of my plan. My question is if I need to have these funds seasoned or since it's very traceable can I wait until I make an offer. My thoughts are to leave the money as long as I can earning interest, but not sure if that will fly with the UW

[DallasLoanGuy]

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@Sbrooks1 wrote:
Going to take a loan against my 401 for DP and closing , have increased witholdings for 2 years to do this. Will only be about 3% of the value of my plan. My question is if I need to have these funds seasoned or since it's very traceable can I wait until I make an offer. My thoughts are to leave the money as long as I can earning interest, but not sure if that will fly with the UW

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some of these plans take a few weeks to cut a check.... so don't cut it too close.

regardless....  if you take a disbursement now or later.... just paper trail it. 

copy the check and deposit it in an account with not a lot of transactions(savings?)

and when i say to deposit the check.... that doesnt mean take the check to the bank and deposit $9900 less cash of $100 so you can go to the bar tonight.

deposit the entire check.... i dont care if you take a withdrawal.... just MATCH the check with a deposit in the bank.

[Sbrooks1]

It's been a long time since I went to a bar😳But absolutely understand. If it is traceable money then it does not have to sit there for two months-- is that accurate? Planned on getting the loan at the same time as app, the LO I've talked to said months ago that would be fine. But, we know how that goes!

[Anonymous]

Just be sure you can get the funds quickly enough.  Some do fast checks (I have Fidelity and its a couple of days) and some places take longer.  A phone call to them should let you know for sure.

[Sbrooks1]

It's at least a two week process, I was just questioning do I delay my app because I need this to be seasoned. Def will initiate the loan soon but will not sit in my account two months before app!

[DallasLoanGuy]

no need to delay ap

if it isnt seasoned, it must be sourced. and that is an acceptable source

[Sbrooks1]

Thanks Dallas!! What happens this time of year because if tax time, if I app in feb do I need to have filed 2016 already?

[DallasLoanGuy]

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@Sbrooks1 wrote:
Thanks Dallas!! What happens this time of year because if tax time, if I app in feb do I need to have filed 2016 already?

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nope.

they arent due until april....   we use '14 & '15

[Sbrooks1]

My income went up 6000 for 2016, is that a reason to wait till April? My DTI currently with hopeful mortgage is 23/41, so close!

[DallasLoanGuy]

if you are w-2 then we could look at yr end paystubs and w-2 as well as current stubs to use the new income. dont have to see it on a 2016 return to use the higher income