I had this issue come up again earlier this week and I wanted to revisit it with you…
This may sound crazy, but having cash for a down payment in the mortgage industry is a bad thing.
If you have cash saved up for a down payment on a home – and you were planning on using it for a down payment – it will present a problem when it comes time to getting a mortgage.
The mortgage world is all about documentation.
…The guidelines on cash are designed to prevent the seller from just giving you the down payment.
So, if you have a down payment – you will have to show where it came from… …checking = good, …savings = good, …gift from relative = good, …retirement account = good, …cash = NO GOOD.
The best solution for this?… Put the cash in the bank. …Leave it there for 60 days. …After 60 days sitting in the account – it doesn’t matter where it came from.
That’s it for today!
Brett
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