Sometimes we have more than one account we like to hold money in. This can be a savings, retirement, 401K, checking account etc…
When you go to close your loan, the account you wish to use may have some documentation requirements from the lender. Here I’d like to go over some of those requirements and some challenges you might face near the end of your transaction.
When a lender verifies your assets available for closing, they will typically document the available balance of each account. This will include all posted transactions / deposits. If you have multiple accounts they will do this with all of them! And, if the lender asks for documentation for large deposits, you’ll have to provide that too! This will all happen prior to final loan approval. After that you can move to close and 2 scenarios can play out.
So let’s break it down…
If you have more than one account, let’s say one with $34,000 and another with $21,000 and your cash to close is $47,000, you would likely need to do one of two things when you’re trying to close:
- Wire your funds from each account separately
- Move money from one account to the other and send one wire
Here are the documentation requirements for each:
- You’ll provide the lender with 2 wire receipts for the cash to close. This can also come from escrow
- You’ll need to provide a paper trail from each account and then the wire receipt for the final cash to close
Just know that if you move money around after final loan approval, the underwriter may ask to see the money movement prior to funding your loan. Especially if the account you sent the money from did not have the full amount available during final loan approval. This can cause delays when it comes to funding your loan and cause additional issues if you have new large deposits in that account.
So my best word of advice if you’re using more than one account to close:
Move money prior to final loan approval, or submit two separate wires!