Author Topic: Mortgage and points  (Read 6909 times)

Offline Yehuda25

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Mortgage and points
« on: May 25, 2018, 11:15:18 AM »
A friend is trying to get a mortgage, however they are giving him issues with a bunch of different deposits into his bank accounts, most from points sold.

The Bank wants an explanation regarding what the transaction is and was for.


Is this standard practice? If so does anyone have something typed up that they can send?

TIA!
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Offline yesitsme

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Re: Mortgage and points
« Reply #1 on: May 25, 2018, 12:47:11 PM »
Consult with a broker or lender a few months before applying, My broker told me anything that is deposited needs to be explained in a verifiable manner therefor cash deposit is a dead duck
Quote
We don't expect you to know where your money went to, we Do expect you to know where it came from,
 money doesn't fall from the sky but it does go down the drain easily
« Last Edit: May 25, 2018, 02:32:10 PM by yesitsme »
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Offline 12HRS

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Re: Mortgage and points
« Reply #2 on: May 25, 2018, 01:38:19 PM »
Consult with a broker or lender a few months before applying, My broker told me anything that goes in needs to be explained in a verifiable manner therefor cash deposit is a dead duck

how far back do they look?

Offline tzifanya54

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Re: Mortgage and points
« Reply #3 on: May 25, 2018, 01:44:07 PM »
how far back do they look?
+1
Would love to know this as well. Also do you need to disclose all bank accounts or can you leave the happening one out?

Offline whacked1

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Re: Mortgage and points
« Reply #4 on: May 25, 2018, 04:33:59 PM »
+1
Would love to know this as well. Also do you need to disclose all bank accounts or can you leave the happening one out?

My mortgage lender asked for 2 or 3 (dont remember off hand) months. You can leave whatever you want out as long as you dont need the money from the account....

Offline ludmila

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Re: Mortgage and points
« Reply #5 on: May 26, 2018, 12:31:28 AM »
My mortgage lender asked for 2 or 3 (dont remember off hand) months. You can leave whatever you want out as long as you dont need the money from the account....
+1
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Offline Schwabster97

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Re: Mortgage and points
« Reply #6 on: May 26, 2018, 11:24:27 PM »
They look anywhere between 3-6 months, it depends on what type of accounts you have and the statements the bank provides (i.e. certain savings accounts from TD only allow a 3 month statement, so if u don't have one that just closed when applying you'll need to show them the latest one and then provide your checking account statements for those months as well if u ever moved any money between the accounts).

Important question, if anyone has dealt with any lenders while having large sum of transactions in your accounts which you are using to use as a proof of finance. 1) How did you provide written proof of how the money was received? 2) Was there any kickback from the lender? 3) Anything not to say?

Offline mord1

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Re: Mortgage and points
« Reply #7 on: May 27, 2018, 01:30:39 AM »
My mortgage lender asked for 2 or 3 (dont remember off hand) months. You can leave whatever you want out as long as you dont need the money from the account....
+1
I think it was 2- 3 months and they want to know where all the money deposited came from.  They only care about the accounts where the down payment is coming from. other accounts you dont have to mention they exist. IIRC they want to make sure the money coming from account for the down payment is YOUR money and not a temporary loan from someone else.
Make sure not to use quicken loans as your lender!

Offline Yammer

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Re: Mortgage and points
« Reply #8 on: May 27, 2018, 01:38:52 AM »
+1
I think it was 2- 3 months and they want to know where all the money deposited came from.  They only care about the accounts where the down payment is coming from. other accounts you dont have to mention they exist. IIRC they want to make sure the money coming from account for the down payment is YOUR money and not a temporary loan from someone else.
Make sure not to use quicken loans as your lender!
Correct. It can either be gifted from a family member or income that can be verified not to be a loan

Offline tzifanya54

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Re: Mortgage and points
« Reply #9 on: May 27, 2018, 09:13:07 AM »
Correct. It can either be gifted from a family member or income that can be verified not to be a loan
Just so I am clear with all this.... Showing only a savings account with X amount in it, but it was transferred in from my own checking accounts, will I still need to show where that money came from? Will I also need to disclose the checking accounts that transferred the money?

Offline yesitsme

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Re: Mortgage and points
« Reply #10 on: May 27, 2018, 09:16:24 AM »
Just so I am clear with all this.... Showing only a savings account with X amount in it, but it was transferred in from my own checking accounts, will I still need to show where that money came from? Will I also need to disclose the checking accounts that transferred the money?
Yes
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Offline mgarfin

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Re: Mortgage and points
« Reply #11 on: May 27, 2018, 10:10:41 AM »
A friend is trying to get a mortgage, however they are giving him issues with a bunch of different deposits into his bank accounts, most from points sold.

The Bank wants an explanation regarding what the transaction is and was for.


Is this standard practice? If so does anyone have something typed up that they can send?

TIA!

My lender took miles sold as a positive. It was counted towards money  for the 20% down plus closing cost we had to show is a gift or our own resources. The lender took a copy of the check showing a biz name a ‏proff it is from a business deal

Offline Yammer

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Re: Mortgage and points
« Reply #12 on: May 27, 2018, 11:10:35 AM »
My lender took miles sold as a positive. It was counted towards money  for the 20% down plus closing cost we had to show is a gift or our own resources. The lender took a copy of the check showing a biz name a ‏proff it is from a business deal
You told them that it was for miles sold?

Offline mgarfin

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Re: Mortgage and points
« Reply #13 on: May 27, 2018, 01:26:09 PM »
You told them that it was for miles sold?
yes

All that the underwriter cared was that it's not a loan!

Offline Yammer

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Re: Mortgage and points
« Reply #14 on: May 27, 2018, 01:42:53 PM »
yes

All that the underwriter cared was that it's not a loan!
Nice

Offline avrumy

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Re: Mortgage and points
« Reply #15 on: May 27, 2018, 04:01:23 PM »
yes

All that the underwriter cared was that it's not a loan!
i just went through this process and you are 100% correct. i had two big transactions and i wrote a statement of what they were.

Offline cozmohoot

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Re: Mortgage and points
« Reply #16 on: May 27, 2018, 04:09:00 PM »
+1
I think it was 2- 3 months and they want to know where all the money deposited came from.  They only care about the accounts where the down payment is coming from. other accounts you dont have to mention they exist. IIRC they want to make sure the money coming from account for the down payment is YOUR money and not a temporary loan from someone else.
Make sure not to use quicken loans as your lender!
A statement will be released this week by the agudah that quicken just worked out and agreed on a proper heter iska.

Offline yelped

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Re: Mortgage and points
« Reply #17 on: May 27, 2018, 05:39:48 PM »
A statement will be released this week by the agudah that quicken just worked out and agreed on a proper heter iska.
Source? That is nice to hear.
« Last Edit: May 27, 2018, 07:53:28 PM by yelped »

Offline cozmohoot

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Re: Mortgage and points
« Reply #18 on: May 27, 2018, 07:35:02 PM »
Source. That is nice to hear.
1 of the rabbis who drew it up and has been dealing with it for years. He got the call Friday afternoon that the owner finally agreed.

Offline theyankel

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Re: Mortgage and points
« Reply #19 on: May 28, 2018, 02:29:52 PM »
yes

All that the underwriter cared was that it's not a loan!
not a loan and not money laundering. they just need a paper in the file. a good clean honest explanation usually works.