Verifying closing funds . . .

[miz]

We had money put back for closing and were advised to pay down a few credit cards to up the score.  We are currently working extra to bring that back and my husband is going to loan some from his 401K.  I know from working with loan processing in the past that it's not always looked upon favorably to not actually have had the money in a savings account while going through this process.  Rather than going through the hassle of explaining and showing proof and having them question it, would it just be easier for us to get a letter from a parent saying they were gifting the money?  We have been working for the past month to clear up an old account and after much arguing with the company they finally agreed to delete the account from reporting.  I don't want to screw up my chances at closing.  The funds will come from my work and my husband's 401K.  Is this good enough?

[Anonymous]

Just make sure that you have the proper paper trail.

You will need docs from your husband's 401k showing it was withdrawn.

Then you will need a statement from your bank showing the deposit.

Since you paid down your accounts, I would assume that they would take that into consideration

[Anonymous]

I am curious how the 401k loan would affect your debt-to-income ratios....which might be a problem!

I have a 401k loan, and it gets taken directly out of my paycheck.  It doesn't show on my CR's either, so maybe it wouldn't make a squat of difference on DTI ratios.  I'm just not sure that is how ALL 401K loans work.