When do I actually need the cash?

[Anonymous]

My DH and I are ready to purchase our first home this summer.  We will be ready to start looking in June - July and plan to put 3% down.  We won't actually have the 3% until August.  My question is this - can we get a "pre-approval" without the money actually in the bank?  Can they just tell us we need it by closing?  Or do we need to prove we have the cash upfront?

[MattH]

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@Anonymous wrote:

My DH and I are ready to purchase our first home this summer. We will be ready to start looking in June - July and plan to put 3% down. We won't actually have the 3% until August. My question is this - can we get a "pre-approval" without the money actually in the bank? Can they just tell us we need it by closing? Or do we need to prove we have the cash upfront?

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I think you need at the very least to document why you are confident you will get the money and no plausible contingency is likely to prevent you from getting the money.

[DallasLoanGuy]

where is the money coming from?

[Anonymous]

We talked with our realtor/broker about both options (paying dp, and having seller pay), and we did not need any proof when we were pre-qualified. 

[Anonymous]

This is what I want to actually do when I apply for a mortgage. I don't have the funds in the bank but I am 100% positive that I will have my 3% down on my loan in a couple of months. THe only problem is finding a lender that can provide this option for me. I don't actually want to go out there and apply with a lender who doesn't do this.

Does anyone know if all lenders can accept this situation or do they vary? I live in Houston Texas and I am thinking of applying for a pre-approval mortgage in abobut 1 month.

Thanks

Greg 

[Anonymous]

When we went and got a preapproval they asked to see our bank statements to see that we had money in our accounts. If you find a house quick you will need money up front for the deposit and inspection/apprasail.

[ShanetheMortgageMan]

theshadow12345 & ficowarrior , as long as you can demonstrate where the money is going to come from (meaning you have to provide the source of the down payment funds) by either providing documentatin from the source of the funds or providing a letter of explanation where they will be coming from - that should suffice to get a pre-approval with.