Coming up with the down payment and closing costs can be challenging enough, but did you know that not all of the money you plan on using to buy a property can necessarily be used? Here are the top 5 non-allowable funds (with few exceptions) when financing a property:
• Funds coming out of a business bank account
• Credit card cash withdrawals
• Non-payroll checks
• Sale from jewelry or random items
Keep in mind that your lender will review every single deposit you have made on every single bank statement. All instances of non-allowable funds will be “backed out” of your total account balance.
Tip! Move ALL funds used to purchase a property into one bank account for two months and make NO deposits or transfers in and out of the account before buying a property.