Another question

[ajzjmsmom]

We have two bank accounts, one that has the money for the down payment and closing costs, the other is our regular checking account, for some reason our LO only wanted the statements for the one for the down payment.  Today UWing came back and wanted the last 2 statements from our local bank as well as a paper trails for the large amount of money in the account for the purchase, no problem because we had anticipated it.  We retired and took a partial withdrawal from our 401K (no judgement please) to get completely out of debt and buy the  house, will the UW have an issue with the large amount of debt we paid off in Jan with part of the withdrawal or are they more concerned wth verifying that the funds to close are not borrowed?  Our credit reports only reflected balances of $48 and $22 and the score they used was 804, we wanted to close some of the credit accounts but were advised by the first LO we talked to, to not close anything as it would affect our credit score/

[n0smirc]

They are really just looking for a verifiable paper trail on the funds and part of that is to ensure that it isn't borrowed. I don't think they'd have any issue with it being 401k money.

[ShanetheMortgageMan]

Yup, 401k funds are fine.  And correct, don't close or open any new accounts during the application process... wait until it's over.