Home Buying in 77469>Question Details

Lj, Home Buyer in 77469

If you are closing on a house and you are short, can you overdraw your bank account and bring that to closing for the closing cost?

Asked by Lj, 77469 Fri Jul 13, 2012

If you are closing on a house and you are short, can you overdraw your bank account and bring that to closing for the closing cost? Or will the mortgage lender find out and deny your loan? I might have to overdraw my account by $1000 to pay for closing because I am short. I can get a cashiers check if my account is overdrawn because I am presenting cash.

Will the mortgage lender find out, or no, because if i do it the day of closing, the overdraft would not yet have posted?

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Answers

4
No

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Sat Jul 14, 2012
Simply stated...solving one problem by creating another one is not a recommended course of action.

As previously stated, there will need to be proof of funds and loan pre-approval before any closing agent will proceed to execute the transaction.
0 votes Thank Flag Link Sat Jul 14, 2012
We do verify sufficient funds to close. So if you are short before loan approval, you won't get approved. However, once the underwriter has signed off on sufficient funds from acceptable sources, we don't reverify funds at the last minute. We do call to make sure you are still on your job though. So in theory, if your bank will issue a cashier's check on an overdrawn basis, I suppose it would work. It sounds like you are on shaky ground though.

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
0 votes Thank Flag Link Sat Jul 14, 2012
Your lender needs to verify your funds to close.
If you are short.... They won't close.

Can you get a gift? http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Fri Jul 13, 2012
I could try but it is very unlikely. Can the gift be from anyone and does it have to be verified?
Flag Fri Jul 13, 2012
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