MSIV Purchasing Home

[lonestardoc]

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My wife and I are planning to purchase a home once I find out where I match on the 17th. Is there anything I should know about using part of my stafford loans in terms of a down payment towards the purchase of a home? The lender tried to tell me that I would have to let the cash from the loan sit in my bank account for 60 days before I can turnaround and use it towards the downpayment.

1) How would he know how long the cash was sitting there for?

2) Why does the cash have to sit for 60 days?

3) Can you even use the stafford towards a downpayment?

 

[gaf]

1) How would he know how long the cash was sitting there for?

Did he (I assume this is your mortgage guy) ask for copies of your two most recent bank statements? It's a common requirement and would show him whether it was within 60 days.

 

[lonestardoc]

No he did not ask for my two most recent bank statements. I am not sure if they typically do? I want to be proactive about it and not have them deny me once they pre-approve me if they find out I'm using recently aquired cash from a student loan.

I could always say that the money is coming out of my IRA or I'm borrowing on the 401K... both of these accounts have enough for a down payment if added to my bank account. My point is...do they delve pretty deeply into your assets to find out where the money has come from exactly. I can demonstrate that I have the money. However, I would prefer not use it. Rather use student loans. Thanks in advance for any suggestions.

 

[gaf]

Last two years' W-2s, 30 days worth of pay stubs, and the two most recent bank account statements are pretty common Your student loans will probably be on your credit report. I think your mortgage broker will have a fairly detailed understanding of your financial situation.

 

[lonestardoc]

Nothing on there regarding IRA or 401K. Do they typically ask for this information. Would they sweat it too much since they want to be able to make the loan.

 

[gaf]

I'm not sure what you mean. Having a 401(k) or IRA will certainly not disqualify you. It is possible to buy with very little (and sometimes 0) downpayment. Are you working with someone good for a mortgage? Just lay your cards out and let them help.

It's not simply a question of can they loan you money. It's also at what rate? with how many points? mortgage insurance? % financed?, etc.

 

[Seaglass]

Yes, they will ask for copies of your 401K/IRA statements as well. Play it by the book to avoid disappointment later.