Short on Cash to Close

[ilkhats44]

I am in the process of closing on a FHA loan, but may be a little bit short on the cash require to close.  I am still waiting on the final numbers, but it should not be by much. Whatever that I am short on, I will be able to make up the difference on closing day since I will be getting paid on the day of the closing and planning to use a cashier check. Will this be ok or will this cause a delay in closing? 

[pizzadude]

I think you'll be fine, assuming that you were planning to go to the bank the day of closing and get a certified check anyway ?

I don't think it should matter if the funds just arrived from your paycheck or had already been there. 

[MortgageMama]

Assuming your loan is Clear To Close, then your lender won't be looking for additional asset documents. You would definitely be required to bring a cashier's check, so plan your trip to the bank accordingly.

[homeloanexpert]

@ilkhats44 

Congratulations on your loan approval!

It all depends on when you have to close. You cannot believe how common this is. Part of the process for your lender, is to verify you have sufficient funds to close. If you have not received your clear to close, the processor will be asking you for an updated bank statement or a transaction history showing your current balance. If you are short, they will ask you when you  will have the funds to close. If you tell the lender that you will have the money next payday and if your close date is after that, then no problem.  

[Revelate]

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@MortgageMama wrote:

Assuming your loan is Clear To Close, then your lender won't be looking for additional asset documents. You would definitely be required to bring a cashier's check, so plan your trip to the bank accordingly.

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I believe a wire transfer is another possible path for immediate funding. Admittedly there's usually a higher fee for that for many folks, but I've used that in both of my prior mortgages.