Don’t Reduce Balances on Your Assets
Do NOT take money out of your checking or savings account right before you are going to close escrow. If it is just for normal living expenses, you should be okay. Otherwise, don’t arbitrarily take funds out of an account that was used to help you qualify. I’ve seen borrowers that had borrowed their down payment from a friend or relative and, after they were pre-approved, decided to give the money back to their friend or relative in the middle of their escrow period. This is a bad decision because if the lender wants to see a more current bank statement from your account, it could cause a major problem. You should always ask your mortgage professional how much money you should keep in your account until the end. The lenders can request a verification of deposit from your bank at the last minute if they choose. A verification of deposit is a form that the bank has to fill out that tells the current balance in the account as well as the last two months average balance. To be on the safe side, keep as much money in your account as you can until you are informed by escrow that your loan has recorded with the county. FIRST 10 PEOPLE - Email for a FREE copy of my
book - Makers and Breakers jeff@somloans.com
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