Earnest Money Cash Advance !!

[Anonymous]

Hi.

We are in the process of purchasing a House in MO. We had to come up with $250 earnest money. I got $75 Cash out of my $300 limit credit card and the rest $175 Cash out of my Bank account. The loan officer asked me to provide her with a statement showing where I came up with money. I gave her my credit card statement showing the $75 Cash Advance , I asked her if she needs My bank statement showing the rest of the money , she told me to not worry about that one . Now I am wondering If this is going to affect my loan approval. Any advise will be really appreciated . Thank you

[Axa]

Others more experienced will chime in, but in my experience just asking around, I get the impression that lenders don't like to see that any sums are borrowed to meet the loan requirements.

[DallasLoanGuy]

is any of the down payment borrowed?

that is a questionon the loan ap

you must answer honestly..... not doing so is mortgage fraud, a federal crime.

[DallasLoanGuy]

i guess you could cure this.... the earnest monies would just be disallowed.

or

issue a new check to the title co with seasoned funds.

you are buying a house..... you must have the $300 lieing around. just be honest with the loan officer and cure it

[Anonymous]

it is a USDA loan. There is no down payment, that is just the earnest money !

[DallasLoanGuy]

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@Anonymous wrote:

it is a USDA loan. There is no down payment, that is just the earnest money !

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cash to close cannot be borrowed either.

just cure it.

you must have had more than $175 available cash when you applied for a home loan.

[Anonymous]

what do you mean by the earnest monies would just be disallowed ?

[DallasLoanGuy]

not credited towards your closing....

title will refund it to you

[Anonymous]

who decides on that option the LO or the UW

[DallasLoanGuy]

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@Anonymous wrote:

who decides on that option the LO or the UW

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underwriter can disallow the $300 earnest money if it cannot be sourced as acceptable funds.

they are not acceptable funds

worse case.... they pretend that the earnest doesnt exist. at closing, the title co refunds the money.

i have done it. not a problem.

hey, they might miss it.

just be prepared