Mortgage Loans

[frio]

I will be starting the home buying process later this week, hopefully getting pre-qualified.  I know most places ask for bank statements etc.  How important is it to have a good amount saved up etc ??  My parents are planning to help us with a downpayment and some other needs when the time comes.  But most of my money has gone to paying old debts and improvinb my Credit Card util%.  Myfico EQ score is 695 currently.  And I have one satisfied judgement and one a late payment from 3 years ago and nothing else.  I would hate to be denied

[seemund]

The "thumb rule" is the last 2 bank statements. It's important that you don't make large deposits in the 2-month period, or it could be a big red flag.

If you do make large deposits, the bank will definitely look for reasons. (You can use "gift" money as down payment, but they could require bank statements from the person that gave you the gift).

[webhopper]

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seemund wrote:

The "thumb rule" is the last 2 bank statements. It's important that you don't make large deposits in the 2-month period, or it could be a big red flag.

If you do make large deposits, the bank will definitely look for reasons. (You can use "gift" money as down payment, but they could require bank statements from the person that gave you the gift).

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Also, you want to make sure that your bank statements do not show a lot of overdraft fees paid...     If you are going to be using a gift, let your LO know up front so that he can tell you what documentation he needs, like a gift letter, copies of the check etc.

There are also limits to how much gift funds can be used on certain mortgage programs...  Again I'd talk it over with your LO to make sure that you've got everything straight

[frio]

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webhopper wrote:

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seemund wrote:

The "thumb rule" is the last 2 bank statements. It's important that you don't make large deposits in the 2-month period, or it could be a big red flag.

If you do make large deposits, the bank will definitely look for reasons. (You can use "gift" money as down payment, but they could require bank statements from the person that gave you the gift).

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Also, you want to make sure that your bank statements do not show a lot of overdraft fees paid...     If you are going to be using a gift, let your LO know up front so that he can tell you what documentation he needs, like a gift letter, copies of the check etc.

There are also limits to how much gift funds can be used on certain mortgage programs...  Again I'd talk it over with your LO to make sure that you've got everything straight

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Will do !!  Im just worried they will see 2k in my account and laugh. 

[webhopper]

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frio wrote:

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webhopper wrote:

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seemund wrote:

The "thumb rule" is the last 2 bank statements. It's important that you don't make large deposits in the 2-month period, or it could be a big red flag.

If you do make large deposits, the bank will definitely look for reasons. (You can use "gift" money as down payment, but they could require bank statements from the person that gave you the gift).

---

Also, you want to make sure that your bank statements do not show a lot of overdraft fees paid...     If you are going to be using a gift, let your LO know up front so that he can tell you what documentation he needs, like a gift letter, copies of the check etc.

There are also limits to how much gift funds can be used on certain mortgage programs...  Again I'd talk it over with your LO to make sure that you've got everything straight

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Will do !!  Im just worried they will see 2k in my account and laugh. 

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My account was overdrawn at the end of one of my statements...  my broker suggested that we do a Deposit Verification with my checking account bank, instead of actually giving them my statements... I was able to give them my actual savings account statement and investment account statements, and they were satisfied with that.

I actually was not planning on buying a house when I applied for the mortgage.  I was desperate because the house i was renting had sewage in the front yard, and was not well insulated, my electric bill was 900 dollars.  I cried, then started looking for a house to buy.  Found some cool houses, then started working on a mortgage. We were homeless for 2 months before getting final approval. I didn't even have a down payment, I had to do a 401k loan, and my dad paid off my credit card. and we literally started saving my entire paycheck in the savings account and managed to live off of my fiance's income. I was originally going to app for a mortgage in march of this yr, but i ended up paying back the 401k loan and my dad instead. The rent house was supposed to tide me over until i could report income for my old house on my taxes, and THEN apply in 2012.

[cassembler]

Not sure if the actual amount you have matters a lot, I believe they'll make it clear that the amount due at closing has to appear before you can actually close.

And, a $2k checking balance is not an unhealthy balance for most folks

[frio]

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cassembler wrote:

Not sure if the actual amount you have matters a lot, I believe they'll make it clear that the amount due at closing has to appear before you can actually close.

And, a $2k checking balance is not an unhealthy balance for most folks

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thats a relief phewwww