You Need To Know This About Cash And Mortgages…

I’ve talked to you about this before, but I think it bears repeating.

Cash is legal tender in our country. You should be able to use it to purchase, or facilitate a purchase for any product or service.

…right?

Believe it or not, having cash in the mortgage industry is a bad thing.

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 just 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.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

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