Financing in 60061>Question Details

Kumar, Home Buyer in 60089

Down payment in bank accounts

Asked by Kumar, 60089 Sun Feb 21, 2010

At what time the down payment will be evaluated by mortgage?

When is the ideal time to apply for mortgage? Is that something during the time of contract or after the inspection & attorney review ?

This is because I am expecting a bonus from my company in mid of March which would be accounted as down payment. So need some advice in exactly when the mortgage process should be started?
Is that a good idea if I start the mortgage process in the next week?

Thanks in advance.

0 votes Share Flag Financing in 60061

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The standard 5.0 contract used by RANWC and most Realtors, has a provision in it that you will make formal loan application within 5 days of contract acceptance with a specific lender. Before you get to contract for sure you should shop for rates, get pre-quals, and get good faith estimates, GFE of closing costs and can use a pre-qual as an addendum to the 5.0 purchase offer. However once it goes umder contract, you have to commit to a specific lender and pay an application fee and order an appraisal or risk waiving the mortgage contingency without a formal loan commitment.

I just noticed this question was postes in February 2010, so probably you are settled in, but just in case another buyer is reading this threading I wanted to throw this out there. Work with one agent to look at houses, talk to lenders to get the pre-qual, GFE's before writing an offer. No reason to scramble to find a lender after you find a house!

Call me if I can be of service!
847 276-0120
1 vote Thank Flag Link Tue Oct 5, 2010
Why wait? As with other posts, you should start your mortgage application process ASAP. Your immediate goal is to secure a loan commitment from a reputable lender. A correct and accurate application to include your bonus income will be a approval condition to the loan commitment.

If you have more questions, feel free to contact me.
0 votes Thank Flag Link Thu Sep 30, 2010

You should really get pre-qualified before you seriously start looking for a home. Lenders offer different programs & your mortgage broker can better answer you down payment questions when you discuss which type of loan makes the most sense. Just let the lender you anticipate a bonus in the near future & they can advise accordingly.
0 votes Thank Flag Link Wed Feb 24, 2010
Well said New Hampshire...
Not to mention this is also how you can compare lenders offers.

Steve Smither
Ardain Mortgage Corp.
847-942-5151 Cell
847-963-1000 Office
Web Reference:
0 votes Thank Flag Link Mon Feb 22, 2010
Just a thought...we went looking at houses before getting approval. We found a real steal and a dream home that was priced for multiple offers. We looked on a Friday, got Bank approval on Monday and the house got 4 offers on Saturday. While we found a great home, it still did not compare to that one. Don't crush your dream. You can put down a deposit, delay a closing, get a loan that requires less money down--but you can't do any of that without a pre approval letter to submit with an offer.
0 votes Thank Flag Link Mon Feb 22, 2010
Hi Kumar:

It's best to get pre-qualified and talk with a mortgage professional as soon as possible. Your down payment is verified with the lender when the loan is submitted. At the pre-qualification stage, we do not require proof of funds in your account now. If you are getting a bonus, make sure you make a copy of the check before you deposit it into the bank. If you have direct deposit, make sure you keep a copy of your paycheck stub for verification.

Please call or email me directly and I would be happy to help you with the pre-qualification process.

Best regards,

Patty Harrison
Sr. Loan Originator
Smart Mortgage Centers Inc.
0 votes Thank Flag Link Mon Feb 22, 2010
Great question. It sounds like you should be in good shape depending on about 15 other factors. I work with a great lender who in about 5 minutes could answer your questions and take care of everything. If you would like their info, just let me know.

Good luck,
0 votes Thank Flag Link Mon Feb 22, 2010
Dear Kumar:

Hello. The mortgage process in my opinion should be started right away, that way your are getting the paperwork and "stuff" out of the way. I work with several clients that make loan application and get a "true pre-approval" before they fall in a love with a home. That way they know what the Max is they can shop for. the Down payment, from a bonus, that is fine. Just amke a copy fo the check prior to depositing it, or if it is direct depsoit, highlight it on your bank statement. You may need a letter from HR dept, explaining that your entitled to a bonus of "x" and have been since.."x'

I hope this helps you, feel free to look at my profile, if I can assist you in the area your shopping would be happy to .


0 votes Thank Flag Link Mon Feb 22, 2010
Hi Kumar,
You should definitely have a full preapproval in your hand before you go house shopping. It is important that both you and your Realtor know how much you can buy, what loan program you will be using, your downpayment amount, interest rate, monthly payment and closing costs. A preapproval will give you all of this.
It is a very simple process, and we can get that done in about 1 hour.
Regarding the bonus, you do not need to 'season' it, you will only need to 'source'. We will need to
get a copy of the bonus check and a copy of your bank statement after you have put the funds in your account to show that the funds are now in there, and available for you to use.
Please do not hesitate to call me with any questions. We would love to be one of the sources you shop for the loan.


Nike Osilaja, CMC
Web Reference:
0 votes Thank Flag Link Sun Feb 21, 2010

Everyone is correct that the sooner the better when getting pre-approved.
This way the loan officer can help you move in the correct manner.
Your scenario is not a problem but it just needs to be documented.
If you have any more questions or need getting pre-approved please do not hesitate to call/email me anytime.
Good luck in your home purchase...

Steve Smither
Senior Loan Originator
Ardain Mortgage Corp.
847-942-5151 Cell
847-963-1000 Office
Web Reference:
0 votes Thank Flag Link Sun Feb 21, 2010
Pre-approval is the optimal word in real estate sales.

What does that mean? Get approved for a mortgage BEFORE you look for a home so you will know what you can afford.

Also, they can approve you subject to you getting your bonus as long as you can document it.

Best of luck!
Web Reference:
0 votes Thank Flag Link Sun Feb 21, 2010
Hi Kumar,
Yes, I would advice you start asap. Discuss the bonus with yr. mortgage co. as it will be looked at differently vs. your straight salary. You will be in a much better negotiating position with a pre-approval and pre-qualification ready to go.
If you are not sure who you should use for this process I'd be happy to give you some names. Definately shop around.
I'd be ahppy to help.
Give me a call. cell-312-246-3523
Thanks for the question.
Coleen Grenier
0 votes Thank Flag Link Sun Feb 21, 2010
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