Posted on: 13th Mar, 2013 12:38 am
I am about to close on a mortgage and have more than enough money in my account to cover the closing cost. However back in November I took out a consolidation loan which I am currently paying. I used none of this money to make my first down payment or my second. However, as a condition before they can finalize the mortgage, they would like me to cover the loan amount before they can approve. I don’t get it???
Hi Guest,
As far as I can understand, the lender wants to be sure that you didn't need to borrow money to make the down payments. It should be noted here that they want to see that the money from the loan that you have used for the down payments washes with money that is currently present in the account. They actually want to see a proof that the down payment money was your money, not loan proceeds.
Take care
As far as I can understand, the lender wants to be sure that you didn't need to borrow money to make the down payments. It should be noted here that they want to see that the money from the loan that you have used for the down payments washes with money that is currently present in the account. They actually want to see a proof that the down payment money was your money, not loan proceeds.
Take care
Hi Guest!
Welcome to the forums!
I agree with what Sara has said. The lender wants to make sure that the down payment money is not a borrowed amount. They want that the down payment money should come from your own savings and you shouldn't be liable for paying it back to someone else.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
I agree with what Sara has said. The lender wants to make sure that the down payment money is not a borrowed amount. They want that the down payment money should come from your own savings and you shouldn't be liable for paying it back to someone else.
Feel free to ask if you've further queries.
Sussane