The Paper Trail the Lender May Trace
Where the money started
to
Where it moved
to
Where it ended
Example
You transfer $40,000 from savings, to a brokerage cash account, to checking, to escrow. Every step may need documentation.
Why This Becomes Annoying
The lender needs to ensure the money did not suddenly originate from a new loan, a credit card, an undisclosed person, or an unverified source.
Better Strategy
Once you're actively buying: keep major funds as simple as practical. Before transferring, ask the lender: Which account would you prefer the closing money to remain in?
Business Accounts
Business owners should be particularly careful. Moving business funds to personal accounts can raise questions about source, ownership and business liquidity.
