Friday, July 15, 2011

Having Cash Can Be A Problem When You Want One Of These...

Good Morning!



I've talked to you about this before, but it's important enough for me to revisit it again...



Using cash for a down payment on a home is not smart.

If you have cash saved up for a down payment on a home - and you were planning on using it for a down payment - it will present a problem when it comes time to getting a mortgage.

The mortgage world is all about documentation.



...The guidelines on cash are designed to prevent the seller from giving you the down payment.

So, if you have a down payment - you will have to show where it came from... ...checking = good, ...savings = good, ...gift from relative (fha/va/usda) = good, ...retirement account = good, ...cash = NO GOOD.

The best solution for this?... Put the cash in the bank. ...Leave it there for 60 days. ...After 60 days sitting in the account - it doesn't matter where it came from.



By the way, if you are having trouble getting a loan done with another lender - don't fret!



...give me a call - there's a good chance I can get the loan completed for you. I do a lot of loans others just can't do.



Have a great day! Thanks for reading!



Brett

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