Mortgage Memo: Funds for Closing

We have to document money in a checking, savings, or investment cash account(s) equal to or in excess of the money you need to close.  Please don’t move money around.  All we need to see is that you have the funds to close.

Bank Statement:  This document shows 30 days of transactions and includes the bank name, your name and account number.  In the old days you got these in the mail.  If you’re getting this from your bank’s website don’t just print a transaction register.  Most bank websites allow you to print or save your statement to a PDF.  We gather two statements or 60 days of transaction in the weeks and months leading up to closing.  If you go to a branch to get statements make sure and have the teller stamp and sign them with the bank stamp.

Allowable funds:

1. Money already on deposit.  We don’t source or document the funds prior to the opening balance of the older statement.  In other words – if they money is already in the bank we don’t ask where it came from.
2. Payroll.  Obviously any deposits coming from your employment are fine.  Any large non-payroll deposits will have to be documented.
3. Secured Loan.  If you borrow money and pledge an asset as collateral (land, home, car, CD, stock, etc) then that money can be used for funds for closing.  We would have to add the payment to your list of liabilities (payments) on your loan application and that might affect your qualification.
4. Gift (depending on the loan) a gift from a family member is acceptable – unless it’s cash.  Again, depending on the loan we’ll have to show the family member has the funds and they will have to sign a gift letter.  Family members may have to provide a copy of the check and a bank statement showing the check cleared.

Non Allowable Funds:

1. Cash.  We can’t count any deposits that are cash.
2. Unsecured loan.  This would include a cash advance on a credit card, unsecured installment loan at a bank/credit union, or student loan.
3. Funds in an account with a business name.

Interim statement:  This is a record of account activity since the close of your last statement.  If you pull this online it will be a check register.  We need to see your name or the account number (partial is OK) on the register to tie it to your other statements.  This can be hard with some bank websites.  Make sure the date range goes back to the end of the previous statement.  If you go to the branch to get an interim statement make sure and have the teller stamp and sign it with the bank’s stamp.

Stocks, bonds, mutual funds, 401K, IRA, etc.:  Any money that is invested that will be used for funds for closing will have to be liquidated and we’ll need to document that with a statement showing the sale.

Again – Don’t move money around:  We don’t match the cashier’s check you bring to closing with the accounts you provide us.  You can also bring multiple cashier’s checks from multiple accounts.  Or you can move money around at the end of the transaction.

Taylor Ortiz
Sr. Loan Officer

2575 Kelley Pointe Parkway, Suite 180
Edmond, OK 73013
NMLS ID 449866
Direct 405-421-0404
Mobile 405-509-1064
Fax 405-562-4272
tayloro@fairwaymc.com
www.TaylorOrtiz.net