Do you have the money?

You want to buy a home, but your deal is on the line because you might not have the money to close?  Hold on.  So your saying you have 8 grand in the bank, but your mortgage broker says you cant use it?  What?!?

This is not your typical scenario but it does happen.  

Here's what can happen if the cash in your bank is not traceable. 

First off, anytime you get a mortgage loan, you have to have proof of funds (PoF) to cover your down payment, closing costs, etc.. which will come from this account or accounts.  This means you cannot go get a loan from the local quick loan shop and deposit it in your bank account and your good.  It's not that easy.

Banks want to know that your good for the money, so to speak.  So, if you are putting 5 grand down on a house - they want to know where its coming from.  Not only that, they want to make sure it is a legitimate.

Here is 3 things you may want to do if your planning on buying a house and want to help assure you will get approved.

#3.  Do not make large deductions or deposits to a bank account you are planning to use to fund your deals unless your prepared to explain in a lot of detail where that money came from.

#2.  Try not to pay off large bills from the accounts your needing to use for Proof of Funds.  The reason is two fold.  You may drop below your threshold of funds needed due to most banks using a 2 month average on your bank account to decide whats its average balance is and second, it shows inconsistency.

#1.  Do not use business accounts for Proof of Funds unless you can account for the checks, invoices, oreven the clients that you are receiving checks from.  By using business accounts as a PoF, you may open a can you didn't want to deal with and could result in you not being able to close.