Selling Car to come up with Down Payment

[Journey2Home2013]

Hello all--first time poster here. We have a third car that we can sell for like $2k. Will we be able to use this cash for our down payment??

Thanks.

[Journey2Home2013]

BUMP

[webhopper]

In short, yes you will.  Be sure to get a bill of sale drawn up and take pictures of the buyer's check before you cash it.  You just need to source the funds.

[Journey2Home2013]

Thanks. I'd rather they pay me with a bank check or a postal money order, is this acceptable?

[webhopper]

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@Journey2Home2013 wrote:

Thanks. I'd rather they pay me with a bank check or a postal money order, is this acceptable?

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A cashiers check or money order is fine... I would offer to meet them at their bank to pick up the funds... that way you know they are being legit instead of defrauding you.

They would probably appreciate the opportunity to do the deal at their bank as well because it protects them from you taking the cash and not handing over the keys

[tooleman694]

I sold my car to use as down payment, the UW wanted to see the money trail from the sale.

[Journey2Home2013]

Great idea, webhopper...Thanks for the input. 

[Journey2Home2013]

Thanks, tooleman694...I will make a copy of bank check/money order before depositing it in my bank account and a copy of the title as well. I will also draw up a bill of sale. I hope this is enough.

[StartingOver10]

Keep a copy of the deposit receipt too with the copies of your bill of sale, bank statement when the deposit was made etc. It's perfectly normal for people to sell items for a down payment. the lender just wants to see the paper trail (as referenced above)