Woodbridge Home Buyers....So You Showed Me The Money - Now Show Me Where It Came From!

 

We recently had a FHA 30 Year Fixed Purchase Loan Closing DELAYED due to the fact the borrower was unwilling to source a large deposit into her bank account.

It turns out the funds were a gift which is okay for FHA and VA home loans but the gift must be documented upfront....

Woodbridge VA homebuyers need to know that its great you have money but as Tamara Inzunza, Associate Broker of McEnearney Associates, Inc. writes below please be able to Show Me ,Your Woodbridge FHA/VA Lender, the Money...

 

So You Showed Me The Money - Now Show Me Where It Came From

 

Alexandria VA homebuyers need to understand that with the recent changes in the mortgage industry, the federal government is holding a microscope under all lenders, and the lenders are applying that higher level of scrutiny when it comes to applying for your mortgage loan.

Yet another reason to obtain your mortgage approval before actively shopping for a home, even though the information you have provided to the lender is exactly what they requested, there still may be some red flags that may prevent you from being approved for your loan.

Lenders will question deposits that are not payroll related.  Quite frankly, your lender will want to know where the money came from, if it's a loan that has to be paid back, or if it was a gift.

If you're buying a home in Alexandria VA and you're getting a gift from a relative, then the lender will require proof of the deposit for the gift, and they will want to see the bank statement from the account where the gift was provided.  Yes, if Aunt Mary is giving you down payment money, they will want Aunt Mary's bank statement as well.

Buyers should not see this as an invasion of privacy, but should be assured that the lender is verifying that you can afford to buy the home you want to buy.  Over the past two weeks, I've heard buyers say the following:

  • "I have money in the bank, so getting a mortgage won't be a problem."
  • "Why do you need to know where the money came from, it's there."
  • "I don't have to provide the lender with all of my bank account statements."

Despite the fact that CNN, MSNBC, CNBC, and all of the other news channels are reporting updates on the lending industry on a weekly and sometimes daily basis, there seems to be a great deal of 'selective listening' when it comes to applying the information to the task of buying an Alexandria VA home in today's market.

Yes, it was easier to get a mortgage just a couple of years ago.  But that was then, and this is now.  Think about it, if you were selling something that was hundreds of thousands of dollars, wouldn't you want assurance that the person buying it could 'show you the money'?  That's the purpose of your mortgage approval.  Your mortgage approval gives you credibility to your buyer agent, the seller, and the listing agent.  Without it, you're not a buyer.  And before you go and say, "I'm paying cash," you'll still need to 'Show Me The Money' in the form of a proof of funds statement.

See Also: We're Sorry But That Loan Is No Longer Available (Featured)

See Also: Toughen Up And Get Your Mortgage Approval (Featured)

See Also: Biggest Buyer Blunder - Shopping Without An Approval (Video on my Outside Blog)

For more information on buying your first home in Alexandria VA, please call me at 703-623-8759. I'd be happy to help you 'Make That Move'.

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Buying or Selling Real Estate in Del Ray or Old Town Alexandria VA? Looking for short sales in Alexandria Virginia? Contact Tamara Inzunza, Associate Broker of McEnearney Associates, Inc. Realtors to list and sell your home, or purchase a new home. I specialize in real estate homes for sale in the beautiful Alexandria VA communities of Old Town Alexandria, Del Ray, Kingstowne, and Manchester Lakes including condos, townhomes, and single-family homes for sale.

Call me at 703-623-8759.

Be sure to visit my website where you can Search MLS Listings of ALL Homes For Sale in Alexandria VA at www.MovingToNova.com/. If you're thinking about selling and would like to know how much your Alexandria VA home is worth, visit http://www.confidentialcma.com/ for a complimentary market analysis of your home. Not selling but curious about the homes for sale in your neighborhood, visit http://www.movingtonova.info/ for FREE Market Snapshot reports and stay informed whenever a home is listed or sold in your neighborhood.

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Contact Markita Aldridge-Woods at (703) 929-2274 or via email for custom tailored mortgage solutions.

 

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Comment balloon 1 commentMarkita Woods NMLS#196099 • December 22 2010 12:57PM

Comments

Thanks for the reblog Markita.  Sometimes buyers really don't understand why this information needs to be disclosed.  A delayed closing could jeorpardize their earnest  money deposit, and will likely cause unexpected expenses for the seller.  In this economy, every penny is counted, and buyers need to show the lenders where their pennies came from!

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) almost 8 years ago

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