Refinance > Refinance & Mortgage Tips: Down Payment From Savings

Refinance & Mortgage Tips: Down Payment From Savings

by: Tristan Hunt

Once you?ve figured out how much of a down payment you can make on your home mortgage, it?s time to determine how to document the source of your funds for the down payment and closing costs. Now you might be saying, ?Why do they care where I get the money?? Lenders need to verify the source of funds to both assess the underlying risk in you as a borrower as well as to prevent loan fraud. This makes it imperative for you, the applicant, to maintain complete and detailed records of how the money which you plan to use for a down payment makes it into your hands. Money from your own savings, checking & money market accounts looks best to the bank for a variety of reasons, and is amongst the easiest sources of capital to document.

Money in the bank is also very easy to document. The lender has the option of asking you to submit bank statements to them indicating that you have the money for the down payment and closing costs, or performing a formal Verification of Deposit directly with your bank. Most lenders ask for statements, generally 2 to 3 months if you are providing full income documentation or up to 24 months if you are providing alternative documentation of income.

When discussing your down payment, your lender may discuss the topic of seasoning requirements with you. If you have money in a bank account for 3 months and it reflects consistently in consecutive statements, that money is considered ?seasoned? 3 months. Your lender may require that your down payment money be comprised of seasoned funds, and that any large influxes of capital into your bank account may have to be extensively and thoroughly explained, documented, and potentially disqualified. So start saving and plan ahead!

There are loan types which do not require any form of documentation in this regard, particularly No Asset Verification mortgages or ?no assets? loan programs. Just as it sounds, this type of mortgage does not require any verification of assets, however lenders generally do not allow the applicant to borrow more than 60% to 70% of the property value without some form of asset verification. There is another type of loan program which is increasingly popular over the last few years called Stated Income Stated Assets mortgages, which allows for limited verification of assets, and some of these programs allow up to 75% or 80% of the property?s value to be loaned to the borrower.

Buying a home with no down payment, often referred to as a ?no money down? mortgage, has become a popular way for first time buyers to enjoy the benefits of homeownership without substantial savings, however it is important to note that borrowers who want a zero down loan will be faced with higher interest rates and monthly payments and are statistically shown to have higher rates of default and foreclosure.

No matter what you decide to put down, if you have and can document assets above and beyond the down payment and closing costs on the home and mortgage you can establish ?reserves? with your application. Having ample capital reserves, good credit, and your down payment sitting in your bank account for a couple of months can in combination help you qualify for some of the best programs available, and potentially save you hundreds of thousands of dollars over the life of your mortgage.

About The Author

Tristan Hunt is a seasoned financial professional with a wealth of experience in the mortgage & wealth management industries. Visit Tristan and the whole RefinanceOne Mortgage team at http://www.RefinanceOne.net for advice about refinancing mortgages, debt consolidation, investor loans for real estate or buying a house with a home loan.

12 Quick Tips For Getting A Mortgage

12 Quick Tips For Getting A Mortgage

by: T. O' Donnell

1. Watch out for the 'Deal Of A Lifetime', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.

2. When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.

3. When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much earlier.
When rates rise again you may not have to change your payment.

4. Consider a fifteen or twenty year term. Try to pay off your mortgage quickly. Use a mortgage calculator with an amortization function, and see what's possible.

5. Keep your mortgage as small as possible. Aim for *comfortable* affordability.

6. Try not to 'churn' your mortgage. Each time you refinance you'll...

12 Quick Tips For Getting A Mortgage

Refinance > 12 Quick Tips For Getting A Mortgage

Refinance & Mortgage Tips: Your Down Payment Is Key

Refinance & Mortgage Tips: Your Down Payment Is Key

by: Tristan Hunt

If you are buying a house, the first thing you need to figure out is how much of a down payment you can afford to make. This may seem like the sort of advice your father would give you, but rest assured there are a few reasons why knowing what you can put down and where you?ll get the money can make all the difference when shopping for a house and a mortgage to finance your new purchase.

Before you pick up your local newspaper and browse the real estate section looking for a new house, call up your banker, your accountant, or your spouse and find out how much you?ve got in savings and liquid assets to make the down payment and pay the closing costs on your mortgage.

First you must consider the source of your down payment, because this affects how much of the down payment your lender will actually attribute to you the applicant for the purpose of qualifying you for loan...

Refinance & Mortgage Tips: Your Down Payment Is Key

Refinance > Refinance & Mortgage Tips: Your Down Payment Is Key

Buying A House After Bankruptcy - Things To Consider

Buying A House After Bankruptcy - Things To Consider

by: Carrie Reeder

Bankruptcy can make getting any kind of financing much more difficult. However, it's not impossible anymore to get financing, even a few days after the discharge of a bankruptcy. But, is getting a loan soon after a bankruptcy a smart thing to do?

It can be tempting to buy a new home, new car, etc., after a bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment. Here are some factors to consider before committing yourself to a new house payment.

Pre-Payment Penalty - Almost every subprime loan (bad credit loan) now comes with a pre-payment penalty. This penalty is usually about 6 months worth of house payments. The pre-payment penalty period usually lasts 2-3 years. That means, if you want to refinance or sell your house in that period of time, that will make it very difficult, if not impossible to sell or refinance....

Buying A House After Bankruptcy - Things To Consider

Refinance > Buying A House After Bankruptcy - Things To Consider

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If you are looking to refinance your mortgage but believe you will be unable to because your credit may be challenged by late payments, bankruptcy, charge off?s, or unpaid medical bills to name a few, don?t worry, there is hope.

There are literally thousands of lenders across the United States that specialize in all different types of mortgage programs for people who have challenged credit.

They are not the typical banks you find down the street from your house that deal with perfect credit only. Nor are they hard money lenders that charge outrageous mortgage rates. They are known as wholesale lenders.

Wholesale lenders work closely with mortgage brokers. Mortgage brokers are the people who work with people looking for mortgages in the way of counseling, educating, and locating a loan for people who find themselves in a unique situation and have trouble finding a loan on their own...

Bad Credit Mortgage Refinance

Refinance > Bad Credit Mortgage Refinance

Refinance & Mortgage Tips: Your Down Payment Is Key

Refinance & Mortgage Tips: Your Down Payment Is Key

by: Tristan Hunt

Refinance & Mortgage Tips: Your Down Payment Is Key

Refinance > Refinance & Mortgage Tips: Your Down Payment Is Key

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Many people complain that they always feel too tired despite getting plenty of sleep; little do they know that the mattress they are sleeping on could well be the culprit. Over time your mattress will become worn which can cause spring to losing their support and the bed becoming saggy and lumpy in places. Not only can this mean that you will not sleep properly but can also cause health problems as a result of pressure...

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Refinance > A New Mattress for Better Sleep

How Sesame and Sunflower Seeds Can Relieve Constipation

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Using sesame and sunflower seeds for constipation make a lot of sense. If you like to eat seeds then this is once way you can add more fiber, vitamins and minerals to your diet and at the same time reduce your constipation.

Maoshing Ni, Ph.D., C.A. and Cathy McNease, B.S., M.H. in their book, The TAO of Nutrition,1987, recommends...

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Refinance > How Sesame and Sunflower Seeds Can Relieve Constipation

Refinance Refinance & Mortgage Tips: Down Payment From Savings televisions

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by: Ken Sink

Business owners: use GPS vehicle tracking systems to improve customer service and bring your business into the Information Age.

The Information Age allows us to read breaking news, review up-to-the-minute stock-market information and check on the status of our bank account?all on demand. We take for granted the ability to find what we want to know when we want to know it.

The...

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Refinance > Improve Customer Service With GPS Vehicle Tracking Systems