When do I need to have my down payment?
Ideally, when you write your offer, your funds should be ready. Funds could be in the form of a gift, the sale of another property, or money you have already saved. We will document these with a gift letter, the contract for the property sale, and bank statements to show you have funds ready for closing.
Occasionally, you may still be saving for closing and will be counting a future paycheck or disbursement you are expecting. Definitely by the first Stage 8 of the loan process, your funds should be in line. And this Stage 8 is ideally 12-14 days before closing.
Lenders will also frequently check funds again prior to closing. Please don’t spend your down payment funds on other items and expect to “replenish” them with payroll prior to closing. This could cause us to have to re-verify funds too close to closing and could slow down the process affecting our ability to meet your contract closing dates.
Learn more: Asset Related Questions
- Can I use cash deposits?
- Can I take a cash advance on my credit card?
- Can I deposit checks from sources other than my payroll check into my account?
- What about transfers into my account from another account?
- What do I do if I have already received money in my account?
- What other things does the lender look for on account statements?
- When do I need to have my down payment?
- What is required for gift documentation?
- My agent is writing my offer this afternoon and I forgot my checkbook. Can my girlfriend (or mom or brother or friend) write the earnest money check for me and I can pay them back?
- I don’t have enough money in my account for my earnest money. Can I write a check from my credit card account?
- Will my earnest money count toward my down payment?
- Do I always get my earnest money back if I don’t purchase the home?
- What other expenses will I have to incur in addition to what is on the closing cost estimates provided by my loan originator?