Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
Re: Can savings come from 401k? or must be from "savings" account?
I should have told you also to not wait until right before closing to take a loan on your 401K if you plan to take out a residential loan that comes with longer terms than a general loan. The reason I say this is because it takes twice as long (approx. 2 weeks) to process as they have to review your purchase and sales agreement to make sure it has everything it should. If your contract doesn't have an estimated time of closing, look through your other loan docs to find it. I found mines on my "Cash-to-Close" Summary. Make sure you fax in an estimated date of closing that is AFTER the date you requested the loan or you may be asked to provide it later before processing which can delay your loan. Fax in your GFE as well. To be on the safe side, I would call and request to speak to an investor and ask what specific things they need to approve your loan. Also be sure your contract has all of the required initials and signatures.

One thing I found out yesterday is that if you want to repay it back early, it has to be paid in full, no partial payments allowed. So when my mortgage ins is removed from my monthly payment at the 5 yr mark, I plan to load that extra money in savings until I have the full amount needed to pay back the loan. Good Luck to you!
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