Down Payment...Is it really that big of a deal?
 October 27 2014     Posted by Mary Poburan

Down Payment...How important is it?

Most clients know that they need a down payment in order to buy a home. However most clients don't realize the importance of verifying this down payment with a detailed statement history for 90 days.Very often when I request the statements for money a client has stated they have, the figures are short or have come from some unverifiable sources. A deal can fall apart if the down payment is not clear. Here a few hints to make sure to make providing down payment a stress free process in your home purchase:

#1 Ensure all statement clearly show your name and account # on them
#2 Any unusual or irregular large deposits should be identified and supported by additional paperwork. ie: did you sell a car? I will need the bill of sale
#3 cash under my mattress is the worse thing you can do when buying a house. DEPOSIT all of your money as cash is impossible to prove
#4 Even if the money is coming from various accounts we need the 90 day history on ALL accounts. We need to clearly see where the money came from. The less moving around the better!

I work with the most amazing clients who I believe and trust however tracing a down payment is almost a forensic science. If a complete stranger( like an auditor) pulled a file they would need to be able to clearly see where all the money came from.Any money from 'Aunty Sue' needs to supported by a gift letter and of course taking a cash advance from your credit card is not something you want to do...unless it is disclosed. After all, as with anything in life...HONESTY IS ALWAYS THE BEST POLICY!!!