Every day I learn of buyers that have been saving their money to buy a home in the future, but they do not keep the money in a bank account. It seems odd that people would do that but for some, it seems to increase their motivation as they see the cash pile up. When it comes to getting a home loan, this practice could create unwanted results.

Before a lender underwrites a home loan, the lender will want to confirm that the cash on hand is legitimate. Verifying the source of funds is a basic loan requirement.

Seasoned funds are funds that have been in a bank account for at least 60 days prior to loan application so prospective buyers should consider putting their deposit and down payment in the bank at least 60 days prior to applying for a loan. The deposit and the down payment must be considered seasoned funds.

If the funds are not yet in the account and the home buyers just located their dream home, there are alternative strategies such as negotiating a longer escrow. It will take time to work with gift funds or any other source of funds to ensure approval.

Today’s buyers have many different financing options and flexible loan programs to allow for unusual and unconventional situations such as self-employed, receiving gift funds from relatives, cash-income, emergency response professionals, teachers, nurses and doctors, low income, recently employed, and buyers with credit card debt, etc.

If you are looking to purchase a home through financing, I strongly recommend that you speak with a trusted lender or a Realtor to learn all your options. Being well informed will increase your chances of making the right home buying decision!

Thinking about buying or selling a home? Contact me at any time. I am never too busy for you!

Mariness Chata / MarinessChata@outlook.com / (661)317-3332 / 
BRE#01082675

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