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Money hiding at home? Do you, or someone you know, have money hiding at home?  We are not talking about a couple dollars here and there, here we are discussing the folks that are not great fans of the banking system and have chosen to stay close to their funds.  Sometimes hundreds of thousands of dollars- at home. And now they want to buy a property.  Maybe a second home, Maybe an investment, Maybe a vacation home, Maybe commercial property- they want to buy something Real Estate related.  First- Congratulations on being such a diligent saver!  Now onto

That money at home sure would come in handy when making a purchase of this nature, but if not handled correctly the money hiding at home may NOT BE USEFUL at all!  OUCH!

Blue Skies ahead! There is a way to make it work for you and allow you to achieve your dreams.  This money needs to be seasoned.  Seasoned is the term used for money that has known origins and comes from a banking institution.  The number one way to produce ‘seasoned’ money for a Real Estate transaction is to have it in the bank for at least 2 months. (some lenders may require a bit more time- so it is good to ask if this scenario applies to you)

The next obstacle to home savers will be sourcing of funds.  what is sourcing?  This is the tracking of funds to origin.  If you have a regular weekly deposit; such as paycheck, it is easy to source the funds.  The problem arises when you have sudden deposits that are non recurring, or one time large deposits.  Most lenders will need to know from where the funds originated.  Very often it is a simple explanation; a year end bonus, a large sale resulting in larger than normal commission payment, proceeds from sale of other real estate, or perhaps a family gift.  But other times it is not so simple and the appearance is the funds appeared seemingly “out of nowhere”.  This is often the case with those who fall into the “money hiding at home” category.

In the end you have the funds to do what you wish and you have the property you wish to purchase- Talk to your lender, know what they need, and then do as they ask and be sure the funds appear in the manner they need to make the underwriters happy and allow your purchase to proceed as seamlessly as possible!!!

Thinking of Buying or Selling? Give me a call 860-575-5001

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Making YOUR Real Estate Dreams a Reality!!

 

 

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