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At what point in mortgage process do you need down payment in hand?

I am depending on the sale of my current home to put a down payment on a new home. At what point during the mortgage process does a lender need to see that I have the cash on hand to make the down payment? by johnson5679 from Los Angeles, California. Mar 27th 2017 Reply


Esta Hoffman (esta@estaglen.com)
#302 ranked lender in California - 29 contributions

In order to get pre approved for a purchase loan, you must show where the down payment is coming from. If it is a gift, however, you can state that it will be a gift and the amount. The documents can follow. However if it is your funds, it must be verified at the onset of the application as all money that goes into the transaction must be documented. If all of the down payment is coming from the sale of your home, we typically get a copy of your listing or sales agreement and from there do that math to approximate the proceeds. The final amount will show up when the house closes and that will be verified at that point. Which can be right at the end

Mar 27th 2017
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Forrest Grant (fgrant@afflending.com)
#1054 ranked lender in California - 1 contribution

Hi Johnson, you will need the Good Faith Deposit at the time of acceptance and the Down Payment at closing... 30 to 45 days... The offer for the new home could be contingent upon sale of existing home and to closing consecutively. The "Estimated Seller Proceeds statement" from escrow can be used as proof of funds for the new loan process. It is done all the time. Let me know if you need help with the Loan, Selling and Purchasing of the new property. I do both transactions.Forrest Grant213-245-0715

Mar 27th 2017
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,788 contributions

If you are buying and selling at the same time, then you should have been advised to use the same title company.. if you are, then you'd be doing a simultaneous closing, the stay with the title company and are applied at the time of closing. If there is a gap in the closings, then the underwriter would need a copy of the Closing Disclosure (CD) of the sale property.. and proof of funds being transferred into your account.. so to answer your question.. if doing a simultaneous closing, the funds do not have to be in your possession.. if there is a gap in the closing of the two properties.. then just a copy of ht CD and bank account deposit.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 27th 2017
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