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Problem in closing

Posted on: 05th Oct, 2012 01:04 am
I applied for a loan through Bank of America, and was given a conditional approval. I have met all conditions, but yesterday my lender informed me that I cannot use the money I have for closing. He said that when the underwriter checked the money coming in going out of the account, the only usable amount was the down payment we gave. The money for the closing cost came from my 401K which I have given them all documents required for this. I don't understand why this is not usable?
Hi Banner,

As far as I know, you can use the money in your 401k account to pay toward your down payment. The underwriter should not have any problems with that. It is strange enough that the underwriter has a problem with the money in that account. You should try to reason with the lender and the underwriter in this regard.

Take care
Posted on: 05th Oct, 2012 02:39 am
Hi Banner,

I agree with Sara! The money from the 401k account can be used for paying the down payments. If you have proper documents, then the underwriter shouldn't create any problems.

Thanks
Posted on: 05th Oct, 2012 11:50 pm
There should not be such problems faced as there might be some mistake with your details and records with the company or bank. You must also check for the policies of the bank as there might be some point you are missing.
Posted on: 10th Oct, 2012 01:14 am
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