As discussed in our section about fund seasoning, you have to be careful how you handle the money you’ll use for your down payment. You need to account for where you received the money. Be sure to follow all advice from the loan officer when it comes to collecting funds. If there isn’t adequate documentation about the source of funds, it could jeopardize your loan.
What to do:
- Sell any stocks and bonds you’ll be using towards your down payment.
- Transfer money you have in an international account (if any). Keep in mind that international transfers take more time.
- Put all the money you are using for the deposit, such as gift funds, in one place. Be sure to document where all the money is coming from.
- Do not open any new lines of credit or make any large purchases.
You’ll need to provide a certified check or certified wire transfer at your closing (no personal checks). Once you know the exact amount you need to bring, be ready to request a certified check from your bank.
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