kathy and michael rain

All funds used for the down payment and closing costs for your new San Mateo home are going to be very carefully scrutinized by the lender:

• You must provide detailed and accurate information to show which accounts the funds are in and where the funds are coming from

• You must document the source of any funds that have been in your accounts for less than 2 months

• Any changes that occur to your financial condition will need to be explained to the lender

• Changes to your assets, employment, income or credit scores during the escrow could jeopardize your ability to qualify

• Provide complete documents – all pages!

• Provide documents with names, addresses and account numbers

Things not to do during an escrow:

• Do not transfer funds from one bank account to another

• Do not make unusual large deposits into your bank

account – you need to provide documentation for the source of any deposits

• Do not buy a car just prior to buying a house or during the escrow

• Do not spend large sums of money buying furniture or appliances

• Do not change jobs

• Do not apply for new credit cards

• Do not close existing credit cards

The lender is going to require a letter of

explanation and/or support documentation for:

• Recent inquiries on your credit report

• Derogatory items on your credit report

• Recent deposits into your bank accounts

• Recent transfers of money from one account to another

• Evidence earnest money deposit has cleared your account

If you are receiving Gift Funds the lender will require:

• A gift letter signed by you and the gift donor

• Evidence of the donors ability to gift the funds – a bank statement

• Evidence of the receipt of the gift funds – a copy of the check or the wire

• Evidence of the funds being received into your account

If you have a question about a possible action – check with your loan officer before you do it!

By: Susan O’Driscoll  of Princeton Capital

/kh