topic Re: Question about funds during construction. in Mortgage Loans

Question about funds during construction.

Anonymous — Sat, 10 Aug 2013 00:20:50 GMT

In the process of buying a new construction home. Will be signing papers next week. Completion will not be until late December. Taking to my loan officer we will not be doing anything more until about 60 days from completion.

Here is my question. My significant other needs a little help with her car payments for the next three months. She is eight months pregnant and insurance will not be enough for all her bills. We have separate accounts. If I transfer money over to her account will it raise flags during underwriting? I do not want them to think that I always transfer money over to her account and then have to explain why I did.

My bank statement ends on the 15th and my earnest deposit check will be on that statement. Will they be looking at every one of my bank statements from now until closing or just ones from 60 days out? They already have two from when I went in for qualification.

I should add that I am applying alone for this loan. Her DTI is horrible but nornally she pays all of her own bills and I pay for the rest.

Thanks.

Re: Question about funds during construction.

Anonymous — Sat, 10 Aug 2013 00:46:44 GMT

They won't need every statement from now until Dec, just the two most recent statements as of the month you're ready to close.

I would avoid transferring money to your SO. Do a cash withdrawal and give your SO the cash to deposit into her bank instead. Underwriters can very picky about the silliest things. IMO, it's best not to do anything that might cause them to start asking questions or poking around.

Good luck!

Re: Question about funds during construction.

Anonymous — Sat, 10 Aug 2013 02:37:38 GMT

Hubby and I are building a home too and it won't be ready until February. We have to submit bank statements every 6 weeks to the underwriter as the commitment letter expires that often.

We each get our paycheck direct deposited into separate accounts and then transfer money for bills into a joint account ever pay period. Hubby also takes his retirement and transfers it into our joint savings that we are using for closing costs every month.

The underwriter doesn't have an issue with it. We do have to show all bank statements so that they can trace the money from each account.

Re: Question about funds during construction.

Anonymous — Sat, 10 Aug 2013 04:41:28 GMT

We weren't required to give all our bank statements BUT in addition to the cancelled checks, my underwriter wanted all bank statements for all our earnest money deposits. So, when we first applied in January I had to give 2 months bank statements and then since we're closing this month, I gave them more bank statements and since I made earnest money deposits I had to give them all those too... so I basically ended up giving them 9 months of bank statements. My loan officer says my file is HUGE!

The underwriter asked us for all kinds of crazy stuff... my loan officer said it was easier to just do it rather than try to argue with the woman. So, don't be surprised if you get asked for all sorts of interesting things. But yea, be careful with everything you do and pay for.

Re: Question about funds during construction.

kimmiller112 — Sun, 11 Aug 2013 05:35:26 GMT

If your bank statement ends on the 15th, you may be able to give her the three months payments that she will need between now and the 15th. So, if you close in late December, with bank statments being requested 60 days prior, it seem like you would have to provide the statement for August 15-Sepember 15 and September 15 - October 15, providing that they ask you around the end of October. But give her all 3 payments at once. Worse case senerio, if they end up needing the statement from July 15 - August 15, you may just have to do a letter of explaination as a loan to a friend and it shouldn't be an issue as long as it doesn't affect the money you need for closing.