Financing in 48335>Question Details

Ryan Her, Home Buyer in 48335

What is better to prove the source of fund in my situation?

Asked by Ryan Her, 48335 Sun Jan 17, 2010

I have about 80% of my liquid assets that will be used for down payment in my trading account (currently just sitting, liquidated all my positions recently). Is it better to

1) Leave the money in there? In this case, what does the lender usually require?
or
2) Transfer the money to my checking account? Would the lender still require documents from 1)?

I just want to make sure everything goes as smooth as possible. What would you advise if you are a LB?

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Hi Ryan Her

Funds of this nature can be used as either assets or income, but not both. Since I don't know your over all profile, I can't answer which would be best for you. However, If these funds are required to be used towards your down payment and closing costs, then they will be looked at as income by underwriting.

If so, this is how you need to proceed: FHA/VA/FANNIE MAE guidelines are that all large deposits must be sourced. That said, if you recently liquated some stocks and placed them in your checking account, underwriting will require 1.) a copy of your most recent stock/mutual fund/retirement statement; 2.) a copy of the check and/or check stub you received from the liquidation of your stocks; and (3) your most recent bank statement that you deposited the funds into. That simple.
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