If for whatever reason OP wasn't able to do what SIS & others suggested above (show them only accounts with large deposits & little money movement), I'm curious - his item number 1 in his original post - if he had put those funds in a JOINT Rewards checking account (he & the wife) instead of just in the wife's name, would that have improved the situation?

Also, for OP's item number 3 in his original post, would setting up a joint account a couple of months ago (he & the relatives this time) made things more kosher? I honestly don't know whether it would or not - just wondering.

staci86 said:The reason it is held up is because the loan was underwritten with the full amount of deposits, not what is needed to close. Depending on the criteria of your loan, those post-closing funds may be needed for approval. Loans submitted to an automated underwriting system must have every penny verified if the AUS calls for verification.

Your loan officer could fix the problem by re-running DU/LP/TOTAL with liquid assets limited to the exact amount of funds you can properly document, and then calling the underwriter to explain that she has new findings reflecting asset requirements for which proper documentation has already been submitted. Once the underwriter verifies that those funds have been properly sourced and seasoned, there should be no problem in approving your loan. "Extra" funds in the account are no concern; they simply need to verify the existence and acceptability of the funds your loan was qualified with.

(Ignore this if you applied for a HELOC, a Jumbo, or another proprietary [non-Fannie/Freddie/FHA/VA] mortgage product.)

That's exactly how this ended up. It's a standard fannie mae conventional mortgage. It was recalculated after they "disqualified" some deposits. No big deal in my case, but I imagine a lot of people aren't keeping or able to show a lot of liquid funds beyond closing costs so if these kind of situations were to come up, it could cost them the house.

cp102 said:I have purchased 4 different homes and I move money around I just have to show where it came from. To ensure they aren't other loans, gifts, etc. I made sure I had kept records of everything, I didn't think it that hard...but then I always keep records of everything so that its easy to go back and make copies. We received a refund for 5900 for a TV we purchased it was defective and we were told the manufacturer couldn't even get the parts (TV was 6 months old) We were refunded the money for our TV I had to show where the money came from and why. I had kept the letter giving us the refund along with a copy of the check.

Damn, a $5900 TV?

ilikebtmoney said:
That's exactly how this ended up. It's a standard fannie mae conventional mortgage. It was recalculated after they "disqualified" some deposits. No big deal in my case, but I imagine a lot of people aren't keeping or able to show a lot of liquid funds beyond closing costs so if these kind of situations were to come up, it could cost them the house.
I'm glad to hear that everything worked out well.

Stories like this reinforce the need to find a loan officer who knows what she is doing, not merely a telephone clerk working for some second rate lender. Problems like this are completely preventable if the loan officer is competent and knows how to do the job. In this case, the loan officer should have reviewed the bank statements prior to submitting the file to an automated underwriting system, and should have done so with only the funds that would pass underwriting review. If those funds prove to be insufficient, the loan can always be re-run with the full balance, which may necessitate delaying closing.

Glitches like this are why so many people think that a loan requires 4-6 weeks to prepare and close. If the loan officer is competent, and the borrower (and seller, if any) is qualified, motivated, ready to close, and cooperative in preparing the necessary documentation, it should typically take 2 weeks, maybe 3.

mminauro1 said:

This is what I need.I am also trying to get a loan for a foreclosed home in Arizona..Can anyone recomend some great hassle less.(if there is such a thing).I have hit a few bumps with Penfed and ING,stupid things.
Can anyone also give FHA info in Arizona.The home is aprx. $500k we have 20% down if needed/775 fico,I dont know the FHA limits or stipulations?
I would Also like to know of any creative financial ave.
Any suggestions.I to have just done construction loans that turned into a reg. loan and a few refi's.so go easy.
20% down on a $500k home is $400k, which is within conforming loan limits. Your credit is great, and you don't have to worry about PMI. Provided your employment is acceptable, your income sufficient, and you can show some post-closing liquidity, there should be no problem with your loan.

You don't need FHA. Based on your LTV and credit score, your best deal will be with a standard agency (Fannie/Freddie) loan, available at any one of several thousand commercial banks or mortgage banks. Pick a few that you trust, and begin shopping.

What bumps are you hitting?

On the primary loan I took out last year I moved money ALL OVER the place and even opened a new account to put it in, since we were moving states and our old accounts were based in the old state (harder to get certified funds, etc). However, I waited until after I had submitted the statements showing the money parked in the original location, told the mortgage person I was going to move it and where, then I moved it. I moved a huge chunk from my own personal account into a joint account with my husband and no one ever said boo.

No cash deposits, but as long as they knew the money was HERE and now it's THERE they had no problem with it. And for both this transaction and my recent refinance I just printed out my online statements for the bank accounts needed (not every account I have, since there's no need for that).

yup the only thing i had to sign was the reason why i had applied and got for 4 cards in the last 12 months.. most of them were near a year old too. just said i was utilizing low rate balance transfer offers to maximize debt cost.

Anyone have advice on how to avoid this if parents are letting us borrow some $ for a downpayment? Get it in small amounts?

dmk112 said:Anyone have advice on how to avoid this if parents are letting us borrow some $ for a downpayment? Get it in small amounts?
Mortage fraud.