Friday, March 8, 2013

Cash Deposit on Home Purchase?

Question by S B: Cash Deposit on Home Purchase?
I am buying a home and I have a cash deposit that we’re having some issues with. The home is $ 117K and I have $ 8000 to put down on a conventional 30 year fixed. I have saved up the money by saving my cash tips that I make at work (I’m a hairstylist). I deposited the money in my checking account last week, thinking that it looked better for the lender to have it in an account. Boy was i wrong! Now, we can’t close on a house until they have three full bank statements that don’t show that money being deposited (closing date on our offer would have to be in mid December). We have a property that we want to make an offer on NOW. The offer is written up but hasn’t been submitted because the underwriters want a 90 day statement.

My questions are:

Do other lenders require shorter bank statements or is this a law that it has to be in there for 90 days?

Should i just pull the money out and say I have a lump of cash?

I have proof that I made cash tips because we have a software at work that calculates them for us so we can claim the cash tips. My pay stubbs are PROOF that I saved that money myself because they say on there ”claimed cash tips, year to date, $ 3000″ Shouldn’t that be proof enough that I had that cash?

It’s not as common nowadays to have a shoebox full of cash under your bed but how the heck did anybody, years ago, buy houses with cash with this law???
Shouldn’t my paystubs be evidence that I have that cash flow?
I also have a stock that is at $ 2000 right now, I have two savings plans, one has $ 1200 and one has $ 800. Shouldn’t all that be evidence enough that I have stable cash and legitimate reserves?
I’m not in a rental, I own my current property.
Submitted that too soon. I own my current home, I bought it with a cash down payment almost ten years ago. that’s why I don’t see the problem now. When i bought my first property, I had $ 2k cash, deposited it in my account then wrote a check and it wasn’t a question.
Absolutely the money was reported to the IRS, that’s what our system is at work. It automatically claims our tips every day then it’s on our pay stub to be added to our W2′s. there’s no way around it, it’s taxed income and my taxes for the last five years show that. About 5 years ago when I started saving the money, I absolutely didn’t trust where the banks and the economy was going. You all have to be honest, it didn’t look good. I just kept saving at home and NO, it wasn’t in a shoebox under the bed, that’s just a saying. It was in a safe.

My main question is, is the standard law 90 days provision or can some underwriters approve 60 days? I have been approved for the loan to close in 90 days but i want to close in 60 days so I’m looking if there might be a lender than requires 60 days instead of 90 days.

Best answer:

Answer by falsi fiable
The lender wants evidence that you have plenty of STABLE cash reserves to pay closing costs and can weather minor financial setbacks to come. That means no recent large deposits. They don’t care what tripe is spit out by your software.

I am currently refinancing my mortgage and had to provide 60 days of banking statements, two years of complete tax returns, and two months of pay stubs.

Know better? Leave your own answer in the comments!


Cash Deposit on Home Purchase?

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