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Mortgage App timing questions

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Dgimple
New Contributor

Mortgage App timing questions

It is my understanding that when applying, you get a "pre-approval", based on FICO scores and the information you provide in the actual application.  Correct?  All of the additional documentation, W2's, paystubs, bank statements, are turned over when you actually have a house "under contract"?
 
Here is my situation, scores of 716 (TU), 751 (EX), 749 (EQ), income of $145,000/year (just me, wife is stay at home mom and am not going to put her on app), DTI is in the low teens, looking to put $20,000 down on a purchase price of around $400,000. 
 
Have about $55,000 in cash at this point, $30,000 deposited in account a couple weeks back, $25,000 has been in account since May 16th, (total of $40k was deposited but used some of it to pay down debt, etc).  I understand that I will need 60 days of seasoning on the money that was deposited back on May 16th, so I have been waiting to app.  Bank statement cuts on the 6th of the month, so on July 6th, I will have one full bank statement showing the 5% in my account for the whole month......do I have to wait for the August 6th statement to cut?  That will be two full statements, or will July 16th (60 full days) suffice?  All along, my paychecks have been getting deposited so my statements are showing additional inflow...
 
I think I am in pretty good shape, just want to make sure that the downpayment source of funds doesn't trip me up.  I have been told from multiple lenders that 5% has to come from buyer...thus the wait for seasoning.  I was thinking of apping this week figuring by the time I get close to finding something and getting it under contract, I will be closer to the August 6th timeframe.
 
Thanks for reading this long post, look forward to reading comments/advice.
Message 1 of 4
3 REPLIES 3
Dgimple
New Contributor

Re: Mortgage App timing questions

Anybody?
Message 2 of 4
DallasLoanGuy
Super Contributor

Re: Mortgage App timing questions



Dgimple wrote:
It is my understanding that when applying, you get a "pre-approval", based on FICO scores and the information you provide in the actual application.  Correct?  All of the additional documentation, W2's, paystubs, bank statements, are turned over when you actually have a house "under contract"? i dont issue pre-approval without paystubs and w-2s and sometimes asset docs unless it is clear that the funds are acceptable.
 
Here is my situation, scores of 716 (TU), 751 (EX), 749 (EQ), income of $145,000/year (just me, wife is stay at home mom and am not going to put her on app), DTI is in the low teens, looking to put $20,000 down on a purchase price of around $400,000. 
 
Have about $55,000 in cash at this point, $30,000 deposited in account a couple weeks back, $25,000 has been in account since May 16th, (total of $40k was deposited but used some of it to pay down debt, etc).  I understand that I will need 60 days of seasoning on the money that was deposited back on May 16th, so I have been waiting to app.  Bank statement cuts on the 6th of the month, so on July 6th, I will have one full bank statement showing the 5% in my account for the whole month......do I have to wait for the August 6th statement to cut?  That will be two full statements, or will July 16th (60 full days) suffice?  All along, my paychecks have been getting deposited so my statements are showing additional inflow... if the deposits are 'acceptable funds' then they do not need to be seasoned. where did the money come from?
 
I think I am in pretty good shape, just want to make sure that the downpayment source of funds doesn't trip me up.  I have been told from multiple lenders that 5% has to come from buyer...thus the wait for seasoning.  I was thinking of apping this week figuring by the time I get close to finding something and getting it under contract, I will be closer to the August 6th timeframe.
 
Thanks for reading this long post, look forward to reading comments/advice.


you can apply anytime. 'old' bank statements dont have to be sent to the underwriter.
Retired Lender
Message 3 of 4
Dgimple
New Contributor

Re: Mortgage App timing questions

Money came from my father, two separate checks totalling $70k.  I have been told multiple times that you can have as much "gift" funds as you want, as long as 5% (20k in this case) comes from borrower funds....
Message 4 of 4
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