Sock Drawer Money
As a loan officer, I deal with so many little details that can become big problems. You just would not believe it! For instance, when I ask a buyer how much money they have for a down payment, (on the first conversation normally), I may or may not remember to also ask "Where is the money?", and "Where did the money come from?"
"It's at home in my sock drawer!"
If there is one thing (but there are many things) that an underwriter is picky about, it is the source of funds. "Why is it any of their business?" you may ask.
History has shown that many home buyers who defaulted on their mortgages did so because they had made loans (that we were not aware of), and we did not include the payment in the debt to income ratio. Then when it was time to pay the piper, there wasn't enough to go around, and possibly the house payment was shorted or late.
"Well, I'll just get my Momma to get the loan for me and sign a gift letter!" Guess what?Underwriters are on to that! They make Momma show them where she got it!
And furthermore, when they look at your bank account statements, (usually for the past 90 days), any deposits that are more than $200 are scrutinized. If they don't match up with your paycheck stub amount and date, they will be disallowed as for counting towards your funds to close! Sometimes we have to get borrowers to hunt down these details, it's not fun, people! But if you learn a couple of things beforehand, this can be avoided.
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Its sounds like detective work to me but has to be done to protect the lender and the borrower from getting into the deep end and not being able to swim. :-))
The more money one has invested into the transaction, the less likely they are to let it go "belly-up"! Proven fact.
Hello Cheryl,
One of the perils of being poor/broke. Every case is different but we can see the focus. Thanks for sharing.
Thanks Claud! Just wanted to remind folks that in this industry Cash is Not King! The confounded gov-ment lol, wants us to account for every dime (so they can tax it, no doubt!)
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sounds like it is not as straight forward as many people may think
Yes, that is one thing that has bitten me in the rear in days past....now I make sure to find out up front! Thanks for reading, KatieMac Your name sounds like a mortgage product!!
lol me have a mortgage product after me fame at last eh