Mortgage Answers / Homebuying Decisions
The Short Answer
A lender may need to verify where a deposit came from before counting the money for a mortgage. Keep records and explain the source accurately. A bigger account balance alone does not show that all funds are acceptable.
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A transfer does not erase the need to show the source. The lender may need records from both accounts.
Tell the lender that the deposit was a transfer and identify the accounts.
Keep the statements and transfer records the lender requests.
Ask whether anything else is needed to verify the source before counting the funds.
Gift money and borrowed money have different rules. Tell the lender whether repayment is expected.
Explain who provided the money and whether you are expected to repay it.
Follow the lender's instructions for gift or borrowed funds. Do not call a repayable amount a gift.
Keep the required transfer and source documents.
Missing records can affect whether funds can be counted. Ask what proof is acceptable rather than guessing.
Describe the source honestly and explain which records are missing.
Ask the lender what documentation could support the funds under the program rules.
Do not assume the money can be used until the lender has reviewed it.
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A lender may need to verify where a deposit came from before counting the money for a mortgage. Keep records and explain the source accurately. A bigger account balance alone does not show that all funds are acceptable.
Missing records can affect whether funds can be counted. Ask what proof is acceptable rather than guessing.
Gift money may be allowed, depending on the loan, donor and documentation. A true gift has no expected repayment. Ask your lender how to document it before moving funds.
A co-borrower's income may be counted if it meets the loan program and lender requirements. The lender also reviews that person's debts, credit and other application details. Adding another borrower does not automatically increase the amount available or guarantee approval.
Homeowners association fees add to the cost of owning a home and may be part of the lender's review. Ask about regular dues, planned changes and special charges. The mortgage payment alone may not show the full cost.
No. The lender may need records showing where the funds came from and whether they are acceptable.
No. Tell the lender if repayment is expected and follow the rules for the actual source of funds.
Explain the situation honestly and ask what records could support it. Do not assume the lender can count undocumented funds.
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Boulder, CO
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