Home Buying in 85326>Question Details

Lj, Home Buyer in 77469

Do I need proof I have enough funds to cover closing costs?

Asked by Lj, 77469 Sun Jul 15, 2012

I was surprised when my loan officer asked me at the last minute to provide additional statements that show my closing cost money has been sitting in my savings account for the past month. As far as I was told, i was expected to bring a cashiers check or wire the money in by my closing date, aug 3 2012. I dont have all the closing cost money until my pay gets auto deposited on 8/3/12. I chose that date to close because it was a payday.
I sent in everything else they asked on friday and the loan officer just said she would let me know if there was anything else they needed.
Cant I just bring my cashiers check to closing, or is it typical they want to see proof of the funds before closing?

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Tell your loan officer how you plan to come up with the funds. It may be all they need to hear. If for some reason they won't submit for final approval until you can show proof of funds, move the closing back by the amount of time the loan officer needs (likely only a 3 days) and then you will have the funds in your account to show the bank. The first thing you need to do is communicate with your Realtor and then your loan officer.
1 vote Thank Flag Link Mon Jul 16, 2012
I spoke to them today and this is exactly what they said. Worst case, they would move closing date. I think everything will be OK from here now that I understand everything. Thanks!
Flag Mon Jul 16, 2012
If you are that close on funds you might want to think seriously about home ownership. Yes, you will need to have funds to close prior to close. Sometimes you might need to have have "seasoned funds" which are funds that have been in your account for sometime.
Hope you can make it happen.
1 vote Thank Flag Link Mon Jul 23, 2012
You might let the loan officer know that you are planning to have it on that day. Maybe the loan officer can get proof from your employer that you will have that money. I would suggest that you talk to them and explain the situation. The loan officer might be able to assist you with what they need. The biggest thing is to communicate with them.
0 votes Thank Flag Link Sun Jul 15, 2012
Yes, this is common at the final stages of the underwriting process to have a request like this to come in. The underwriter could have several reasons for asking for this. The underwriter needs to confirm that you have the ability to perform on the contract on your own, without assistance.
0 votes Thank Flag Link Sun Jul 15, 2012
In answer to your question, yes, it's typical. If you have a major increase in funds or can't justify where the money came from, then that's a problem. A lender must ensure that a buyer hasn't taken a $5000 cash advance on a credit card to pay the down payment. You shouldn't get a loan to qualify for a loan in this case. You may emphatically claim that's not the case, but nobody knows you and nobody makes exceptions just because you say "not me". For fairness, lenders follow the same tracking of funds for each applicant.

Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes Thank Flag Link Sun Jul 15, 2012
And, yes, they should have told you up front.
0 votes Thank Flag Link Sun Jul 15, 2012
They are required to make sure the funds are seasoned. Which really means clean and/or yours and not a gift.
0 votes Thank Flag Link Sun Jul 15, 2012
You are getting a loan and the lender is asking for you to provide evidence you have the funds not only for your down payment, but your closing costs and generally 2 months piti ( total payment including taxes and insurance). The lender should have been clear up front on how much you would need to verify in order to receive a full loan approval.
It sounds like you had planned out your funds to close, but may not have had a complete "counseling session" with your lender...another reason it is a good thing to work with a Realtor who can provide you with a "team" who work together for the mutual benefit of all involved.
Web Reference: http://Www.teamtexidor.com
0 votes Thank Flag Link Sun Jul 15, 2012
I really wish they would have told me. My realtor did not tell me and the loan officer did not tell me. I specifically told the realtor August 3rd was a pay day and I was relying on my paycheck to come in to have enough for closing. They made it seem like as long as it was certified funds, we were fine. I wish I.could have known sooner, I would have had a later closing date.
Also I have been out on medical leave from work so I dont have it in savings. The medical leave for the past two paychecks were not paid. I am back at work full time now and I explained to the loan officer my situation. I will follow up tommorow with them and I hope this gets worked out.
Flag Sun Jul 15, 2012
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