Lindsay,

Under most circumstances you will need to prove two months of reserves (mortgage payment x 2) plus whatever down payment you have agreed to and where it is coming from to your lender's underwriter before your loan is conditionally approved. The bank needs to know where these funds are coming from before they will normally approve the loan. Regardless of where they are coming from, once you are approved you will need to bring whatever amount that is required to closing in certified funds. If you were making a purchase and had a deposit with the contract then that amount will be deducted from the total due.

FHA requires 3.5% not 3% now. And you have to have proof of the downpayment before finalizing the loan to go to closing... then you give your money at closing usually.

Hi Lindsay,

If you are planning on putting money down on a mortgage, you should have it available to you when you are ready to buy. Closing happen anywhere from 30 to 60 days from contract date, so you should get under contract when you are financially ready. Have you looked into FHA Loans? You do not need much of a down payment for these loans. FHA loans allow sellers to contribute up to 6% to your closing costs and prepaids and it requires a 3% doen payment.

Please let me know if I have answered it and if you have any other questions.

Regards,
Carla Rocha
Coldwell Banker Residential
954-895-7341

Hello Lindsay - You have the choice of making a full downpayment at Contract or making a partial deposit with the balance at closing. This is a quick answer to your question, if that is all you need to know.

Best regards,
Angela Jensen
REO/Foreclosure Specialist
Coldwell Banker
(954) 465-1388
jensenatj@aol.com