| | | |

Mattress Money and Real Estate

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

Are you one of those people that stash money under the mattress?

A majority of consumers say they keep their cash savings in a bank, but more than half also say they keep their cash at home in a secret location.

Still, when you’re closing on a home loan you’re not going to be able to come to the settlement table/closing with duffel bags full of Benjamins like Al Pacino in Scarface.

Lack of verification of income or assets is one of the biggest reasons contracts fall through. But why?

The Patriot Act of 2001 put added restrictions and reporting requirements to prevent terrorist groups from laundering money through real-estate transactions. We must comply!

Not only must cash savings be deposited in a bank account to be part of asset calculations, it has to stay there for at least 60 days so that we mortgage brokers and lenders can account for the cash through at least two bank statement cycles, a process lenders called “sourced & seasoned.”

Cash gifts from relatives must be documented too; otherwise, they can be considered an undisclosed loan which could impact your all-important debt to income ratio.

This is why we always recommend any one that is looking to buy a home, to begin the process 3-6 months before the desire move in date.

Give me a call, I will be happy to help you! 713-387-9521