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Frequent Contributor
Posts: 297
Registered: ‎02-12-2012
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Questions for the mortgage experts needed.

Earnest deposit; what paper trail do I need when I close? I have given 5 checks to my builder (non construction loan, just for deposit and upgrades from his plan) By the time is built, I would have given around $20,000 to my builder with checks from my checking account.

 

Sweat equity; What and how do I prove this when I want credit for my contribution to my lender? I hired my own tile contractor (best in my area, who is a friend and doing it for free) and I paying for all the tile and supplies, plus helping with the labor. The builder gave me a $4,000 credit for having the bathrooms tiled, and the mudroom. The bathrooms are a custom tile job, with tile showers. I just want to make sure I have my paper trail organized before I attempt to close in December or January.

 

Lot Ownership; how do I get down payment credit for a lot that was given to me and what paper trail do I need for lender? I would have owned lot for 5-6 months before closing on a completed house from a builder. Lot was closed in my name 3 weeks ago. 

 

I want to make sure I have my deposit money all lined up, because every time I write a check for this house, my savings is decreasing and I don't want to not get approved because my saving is not 20% of the final home appraisal costs.


Starting Score: 656
Current Score: 678 TU 08, 665 EQ MyFico, 698 EX PSECU
Goal Score: 7OO needed for Mortgage application


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Frequent Contributor
Posts: 305
Registered: ‎07-05-2011
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Re: Questions for the mortgage experts needed.

With Earnest money I made copies of the Cashiers Checks along with bank statements to show corresponding withdrawls.   I then brought an organizer and labeled all my documentation so once the MB requested information it was readily available.

Fico September 2012; TU 681, EX 674, EQ 652
Fako October 2012: TU 706, EX 641,
Frequent Contributor
Posts: 297
Registered: ‎02-12-2012
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Re: Questions for the mortgage experts needed.

I have used personal checks, I hope that is not a problem. I have a USAA (main) bank account that has a copy of the check and when it clears my account. I will make copies like you suggested and put in an electronic portfolio and paper folder.
I'm still wondering about sweat equity and how I get credit for this. One MB told me just to have builder decrease price on the house, and I informed him it didn't sound correct because it will still be included in appraisal and I'm still paying for it, but won't get credit or value as down payment

Starting Score: 656
Current Score: 678 TU 08, 665 EQ MyFico, 698 EX PSECU
Goal Score: 7OO needed for Mortgage application


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