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When do I actually need the cash?

Established Member

When do I actually need the cash?

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?
Message 1 of 7
6 REPLIES
Senior Contributor

Re: When do I actually need the cash?



ficowarrior 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?





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.
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
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Message 2 of 7
Super Contributor

Re: When do I actually need the cash?

where is the money coming from?
 
Retired Lender
Message 3 of 7
New Contributor

Re: When do I actually need the cash?

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. 
Message 4 of 7
Frequent Contributor

Re: When do I actually need the cash?

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 
As of 3/17/08 - TU 619 / EQ 666 / Ex 624
As of 4/17/08 -TU 621 / EQ 671 / Ex 626
As of 6/07/08 - TU 627/ EQ 688 / EQ 644
Message 5 of 7
Valued Member

Re: When do I actually need the cash?

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.
Message 6 of 7
Super Contributor

Re: When do I actually need the cash?

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.
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 7 of 7