Large Deposit

[Anonymous]

I am in the process of closing on a home with a closing date of 8/31/10. The loan officer just sent me an email to inquire about a large deposit.  The deposit was a refund of 2800 from my student loan as I am currently in school.  If I am honest I am afraid they will not grant me the loan but I can't lie. I am not using the money for the down payment as the loan is VHDA with down payment loan.  The money is just sitting in my reserves.  Any advice would be appreciated?

Thanks!

[Anonymous]

Definitely don't lie. 

It's a normal underwriting condition to validate the source of any abnormal deposits.  If you don't need the money for down payment or as part of your reserves, the nature of the condition is basically to confirm that you aren't taking on undicslosed personal loans, borrowing from loan sharks, or cheating the IRS.   No biggie. 

[Anonymous]

Thanks for the reply. No one replied yesterday so I called the loan officer and told her the truth. She said it was OK. I figured the worse they could do was delay the loan or I could apply somewhere else.