Help did I make huge mistake?

[Vegas247]

I'm heading into the final stretch and today underwriting asked for most recent paycheck stub for the last time and bank statements for the last time and everything's been done and approved conditionally and just waiting for it to come out of underwriting and All I need to do is just submit my last paycheck stubs and last bank statement  and my mortgage lender says it will be approved and closing disclosures will be sent. But yesterday I deposited $4020 into my account from a sale that I made for my drums and having a garage sale before moving into the new house, and it will show  on the last bank statement I just submitted to them today. I just wanted to get rid of all the junk and get all new furniture and things. I hope I didn't blow my chances by depositing $4020 into my account. Can anyone see if that will be a problem? 

[Anonymous]

Congrats on the new home!    They told us to only deposit regular pay.  We have a side business but didn't need it to quality.  So they told us to just put the funds somewhere else.  Keep it simple.  Nohting out of the ordinary.  We did this the entire time our home was under construction until closing day.  But that was 4 yrs ago.  Things could have changed since them.  But I can be they will ask you about it.

[Vegas247]

please see next post because I don't know how to delete a post.

[Vegas247]

Should I write a letter of explanation and email it to my lender without them asking for an explanation, or wait till-if they ask for an explanation? I'm just tired of waiting for it to come out of underwriting and want to celebrate with a full approval instead of what I got today (well I guess technically yesterday) which was a conditional approval. I submitted what they wanted including SSA conscent, most recent pay stub and the last bank statement which shows the $4,020 cash deposit. The cash was from vintage custom made drums and cymbals that I sold for $3,000 to a friend and tools and furniture from a garage sale I have been doing for the last 3 days. I wanted to get rid of a lot of old things because I want brand new stuff for my house.

[Appleman]

This seems like an issue to get ahead of before it is a problem. Being up front and able to account for the deposit is important. I imagine this extra money was not needed for closing? Do you have any proof of the sale etc that would help the UW?

This is one of the reason I have multiple bank accounts. I provided my loan officer a clean checking account to look at (meaning little activity).

Good luck

[Anonymous]

They will ask about it and it would be best if you had a bill of sale explicitly listing those items but no new credit and no large deposits are the big home buying guidelines.

We had to write a letter of explanation for my husbands 100.00 cash birthday gift. We did have a deposit of $1000 from the sale of our old golf cart but we had a full bill of sale for it.

[Mrsg714]

Try to remain calm and ask your LO. Most likely they will ask about it and as long as you have a bill of sale you will be fine. If you don't have one and you do NOT need the money to close it shouldn't be a big deal. My lender only questioned deposits made over 1% of the sales price of my house. There was a deposit I'd made that my LO asked about and it wasn't a big deal.

[Anonymous]

Everyone who's telling you a bill of sale is good enough explanation is right.

Also, my experience (and I'm sure all lenders are different) is that any money beyond the down payment and closing costs isn't investigated.

I had $13k in the bank, which was sourced and validated a month ago. Our closing costs & down payment were $12,400.

My husband deposited a $12k check into his account three weeks ago, and because we already had sourced our down payment and closing costs, they never asked about the $12k deposit. I gave them a proactive heads up and told them it was regular income, he was just paid quarterly, and they said "OK. Shouldn't be an issue." We were never asked for an explanation beyond that.

You should be fine.

[Vegas247]

Well nothing was said and everything is going according to plan.