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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