Cost Cost Funds Question

[pdog661]

Hi,

We are closing on a house in Mid July. 

We are going to have to close about 5 accounts to complete the closing cost funding.  

Some of these accounts need about 45-50 days to clear, and place in my checking account.  Since the funds will hit my account so close to our close date I will not be able to show statements of the funds leaving(many are quaterly statements only), and I will not be able to show them in my checking. 

Will underwritting care that I can not show the transfer, but will be able to show a certified check of the funds?  Is it enough to show the statements with the funds in the accounts, and simple tell them this is where I plan to pull the funds from for close?

Thanks.......

[foofighter74]

The underwriter will need a proper paper trail to source the funds.  My understanding is that funds that come from retirement or savings plans...or investments do not need to be "seasoned"...because it's essentially your money.  The funds are just being transferred from one account to another.

As an example, my wife got a new job and was hired back in February, shortly before we officially applied for our loan.  Shortly after we applied for our loan, she received a 401k distribution check from the plan she had with her former employer - the rollover periods were not going to line up and the check was less than $3,000...so we just stuck it in our account. 

We had to provide a transaction history (Because her statements were done quarterly as well) from the 401k account showing the disbursement as well as a copy of our statement showing the check going in, along with a copy of the check, and the check stub (and we threw in the deposit slip as well as it was included with a paycheck on the same day)...which shows a sufficient paper trail.

The 401k money was our money - so the deposit is an "acceptable 'source, but you do need to create a paper trail.  In your case, you're probably going to have to provide transaction reports, copies of checks or wires, as well as bank statements showing the money going into your account.

My guess is that until you can create a paper trail, you won't be cleared to close - your closing will be pushed from mid to July until later in the month.