Thank you to all you who posted answers to my questions, you guys are amazing!!!. Here's another:

Asked by Emiley, San Diego, CA Tue Apr 2, 2013

Should I liquidate some of my liquid asset (currently we have 1/2 in bank and 1/2 in liquid assets) and place into my saving account so that my bank account looks more bulky in order to appeal to the Lender? I just want the best interest rate. I'm currently working on my credit score, (just got an increase in credit limit hopefully that boost it)

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8
Wayne L. Bro…, , San Diego, CA
Tue Apr 2, 2013
Emiley

Any lender will need to source and season any of your liquid funds. Normally lenders go back for the last 60 days using bank statements. I am not certain where the second half of liquid assets are coming from. All lenders will require a paper trail of any large deposits usually over $ 500 or out of the norm for payroll. Funds must be on deposit usually for 60 days, or have a solid paper trail as to where they came from.

If you just got an increase in limit, depending on how fast your creditor reports it, you might need to have this corrected under Rapid Rescore that I discussed in your previous post.

I understand that you want to improve your credit and such, and thus possibly improve your rate.

I would suggest that once you select a lender that you discuss the various pricing based on your credit score vs what it could be if improved. Most lenders can do this thru a program model we all have access to. What I am trying to say, is that you might only have a slight improvement in rate for all the effort you are going through. I don't mean to sound as though this is not important, but many times the difference is just slight.

This also depends on the type of loan you are seeking.....Conventional, FHA, or VA in conjunction with your score and down payment in the case of Conventional loans.

Hope this helps.

Wayne L. Brown
Mortgage Banker
Security National Mortgage Company
NMLS # 343946
Company NMLS # 3116
1 vote
John Georges, Agent, San Diego, CA
Tue Apr 2, 2013
No need to go to that trouble. All assets will be counted. You do not want to produce a long and winding paper trail or letters of explanation regarding the movement of funds. Keep it simple. My suggestion is to get yourself fully pre approved now and then continue to work on your credit if you so choose. Check out what you qualify for today including a great quote on a rate. Contact me anytime to discuss options along with possible Grant programs if your Buying in San Diego.

John Georges
jhgeorges@msahomeloans.com
http://www.quickloan-approval.com/
1 vote
Daniel Lehman, , San Diego County, CA
Tue Apr 2, 2013
Assets do not affect your interest rate. They are solely used for reserves (if necessary), cash to close the transaction (such as down payment), and really dont have any impact on your interest rate. Same as income. It doesnt matter HOW much income you have, as long as you qualify. Higher income OR higher assets have no bearing on your interest rate. They are more a "yea" or "nay" when it comes to qualifying.

So, it is unnecessary.

This is what I would recommend. There are two types of lenders. Order taking type organizations, like banks and credit unions with inhouse loan officers, and then there are more consultant type lenders who will lead you through all of this and advise you of your best interests.

Its kinda like a waiter at Chilis vs. a waiter at a high quality restaurant. The waiter at Chilis will tell you everything on the menu is good, when the waiter at a great restaurant will tell you "dont get that... Get this, and get this wine with it..."

In other words, find a good lender that will take you through all of this. I would look for a referral, and definitely stay away from the internet...

I am willing to help if you need me, but if not, ask someone you respect for a referral and these answers should be very available to you...

Thanks!

Daniel Lehman
WJ Bradley
858-345-4725
1 vote
Seth Chalnic…, Agent, Cardiff, CA
Tue Apr 2, 2013
Best to leave assets exactly where they are, and let the lender advise when to make the transfer. If you do need to move money around though, be sure to paper trail everything. Don't sweat them seeing the bulky account, because they are going to look at your whole financial picture.
1 vote
asirois, , San Diego, CA
Tue Apr 2, 2013
Not necessary - all assets can be counted for you if they are liquid - they don't need to be in one account. Moving money around too much can cause additional documentation requirements.
Web Reference:  http://www.guildMESAsd.com
1 vote
Cory La Scala, Agent, San Diego, CA
Tue Apr 2, 2013
No need to move assets around. Even if you'll be using them for your down payment or closing costs, you may be able to keep them where they are until you need them. When I write offers, I'll include withdrawal information for the seller and their agent, for certain types of accounts, so they can see the assets are easily liquidated to use in escrow.

I have a few lenders that I trust, both direct lenders with in-house underwriters that can close loans in 30 days or less, and brokers, who have the option of lending direct or using a lender they feel would be best in your situation. Not all direct lenders are order takers, or I wouldn't be using them. It's like saying if you work for Company A, they're more reputable. It's all up to the individual you're working with. Some are really good, some who work with brokers will tell you what you want to hear. When I hear "no problem" all the time, there will likely be problems. Some don't even care if they close your loan, because there are three more around the corner. I've worked with both, and keep the good ones.I also keep the good ones on stand-by if I start to see red flags from the "no problem" loan officers.

Feel free to contact me anytime with questions.

Cory
0 votes
Chris Gorno, Agent, Carlsbad, CA
Tue Apr 2, 2013
Emiley~

I will let the Lending Experts handle this one and I must say "excellent answers" by all of the Mortgage Brokers on this post! You have great questions Emiley, and good for you for taking the steps to get your credit in top form!

Chris Gorno
0 votes
Daniel Lehman, , San Diego County, CA
Tue Apr 2, 2013
Emiley,

One more thing... If you start moving assets around, you can really HURT the process. You might end up having to track all of those deposits due to federal money laundering laws, and the patriot act, etc. Moving money around can really make the process tough on you.

Same with credit. If you have an old collection and you pay it, it can really HURT your situation because the credit bureaus dont decipher between an unpaid collection and a paid collection. So, by paying it, you are making an OLD collection a NEW collection.

You REALLY need to just get in with a good lender and they can tell you EXACTLY what to do.

Again, here if you need me. BUT, find someone and dont try to do things on your own...

D
0 votes
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