Funds to Close - What to do and to avoid.

If your Cash for your downpayment for your loan is in the bank and it has been there for more than two months you are fine... Free!! No more paperwork to provide other than your Bank Statements.

Now, the problem arises when you have cash in hand and have deposited the money just before you need it, this is a big NO NO!  Most loans do not accept cash in hand at all and you will have a big problem if you can not proof the source of the funds.

If you know you are buying a home, and you will put a downpayment, your money needs to be in the account you will use.  Do not make any large deposits that you won't be able to be verified.  The bank will question any unusual large deposits made to your account.  Be prepared for that if you do.

This is a big problem and the one that people understand the least.  They get really upset because they don't understand why the bank needs to know where their money came from.  This is due to money laundry and it is a HUGE thing now a days.

To avoid any problems, keep your money in the bank, I can not stress this enough.  You will save a lot of headaches and more and more paperwork.