TALK TO THE LENDER BEFORE DEPOSITING OR MOVING IT.
Talk to the lender before depositing or moving it.
The lender can explain how the applicable program treats asset documentation and how the cash can be used.
Example
You have $20,000 saved in cash at home. You deposit it two weeks before closing. The lender asks: Where did this $20,000 come from? You say: I've been saving it for years. That may be completely true. But underwriting needs acceptable documentation, not merely a verbal explanation.
Why Banks Care
Mortgage files need documented assets. Unverifiable cash can create concerns involving:
- Borrowed funds
- Fraud
- Undisclosed obligations
- Source-of-funds requirements
Don't Create Fake Documentation
Never manufacture receipts, gift letters, or sale records to make cash look sourced.
What If I Already Deposited It?
Tell the lender. Let them determine whether the funds can be used, whether additional documentation is available, or whether other verified assets should be used instead.
