Strategic Financial Planning

Most buyers do not have enough cash available to buy a home, so they need to obtain a mortgage to finance the purchase. Since you will probably make your purchase contingent upon obtaining a mortgage, the seller has the right to be informed of your financing plans in order to evaluate them. That is one of the major reasons that financing details are included in your offer.

Down Payment

As part of your offer, you will need to disclose the size of your down payment. Once again, this allows the seller to evaluate your likelihood of obtaining a home loan. It is easier to get approved for a mortgage when you make a larger down payment. The underwriting guidelines are less strict.

Don't Move Money Around

When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.

The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer.

Our Services Can Help You Get That Dream Home

• Foreign National / Non-US-Residents
• Fixed Rate Mortgages
• Adjustable Rate Mortgages
• Debt Consolidation
• Refinancing
• FHA Loans
• Poor Credit/No Credit

Financial Advice

Buying a property is not a "money making machine". Buyer should thoroughly familiarize themselves with any property contemplated for purchase.

Rental incomes are generated from a variety of sources. These various sources all have different buying power and agreements, which means that the revenue paid to the owner varies from rental to rental, depending on the source of the reservation. Your rental income may pay all your yearly running costs depending on your mortgage payments.

Remember, if you have any questions about the buying or financial process, we're only a phone call or email away!