Underwriting/Bank accts

[Believe1970]

Our Realtor should be sending our lender the contract in the next 2/3 days. We will fill out the application and then I guess it goes to underwriting. My question is our deposit/closing costs are coming from 401k/403b/seller concessions and they will not see the money in the bank. Next Friday we will have $4000 to $6000 coming from our tax returns but that is money we want to save for unexpected surprises. We did tell them we are using 401k/403b for the deposit/closing costs but will we get denied because the money is not in the bank account? We don't want to take it out till we are sure the mortgage will be approved.

[StartingOver10]

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@Believe1970 wrote:
Our Realtor should be sending our lender the contract in the next 2/3 days. We will fill out the application and then I guess it goes to underwriting. My question is our deposit/closing costs are coming from 401k/403b/seller concessions and they will not see the money in the bank. Next Friday we will have $4000 to $6000 coming from our tax returns but that is money we want to save for unexpected surprises. We did tell them we are using 401k/403b for the deposit/closing costs but will we get denied because the money is not in the bank account? We don't want to take it out till we are sure the mortgage will be approved.

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No it won't be denied because the money is not yet in your account. Just tell them that you are using the 401k/403b funds. There may be a limitation as to how much of your funds can be used (usuallly 60% is the max) so make sure you address this with your LO.  Also if you plan to have a seller contribution, it must be in writing in your contract.

[Believe1970]

Thanks for the response. Just keeping our fingers crossed and see what happens.

[DallasLoanGuy]

no problem. underwriter will still approve.... 'approved with conditions'

the approval conditions will be to source the cash to close. no biggee.... happens all of the time.