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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 101731
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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Mortgage broker

Customer Question

mortgage broker
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  Ely replied 11 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. I am not sure I understand your question here. I understand the situation, but can you please clarify what it is you are asking, specifically?

Customer: replied 11 months ago.
I need additional funds to close on a home in 5-6 weeks. I can get the money needed by selling/ trading in an expensive car I own. My question / concern: My mortgage papers say any large amount of liquidations done to pay for home must be done and in account 30 days before closing. I could potentially meet that deadline . Once I sell my car, I need another one to drive immediately. So I would need to put some money down and either buy or lease a less expensive card. Here's the question /concern: Concerned that my credit rating will drop a bit with a new loan if I do this now and I will either have a higher payment or/ given that I will have for example $400 a month in car payments vs $100 month now the mortgage company either wont approve the mortgage or will charge me a higher rate. So I thought of doing this say the week or even a few days before the closing, but then I read about the funds must be in the account for 30 days prior. We are talking about $25,000. Not sure what to do or when or how strict that is about all money must be in the accounts 30 days prior. I'm also using the funds from the sale of my current home and that money won't be in the account until that same day!
Customer: replied 11 months ago.
I am currently "pre-approved" and about to send the mortgage company final documentation. I have a float down option which I am about to execute and lock in within about 1 week.
Expert:  Ely replied 11 months ago.

Thank you for your clarification.

The lenders - in my opinions - tend to be fairly strict and will want to see proof of the money 30 days prior. Or rather, their underwriters will. So even if the lender waives it off saying "it's just a thing," the underwriter is much more likely to take it seriously.

I am afraid I do not have an immediate solution for you. You are essentially seeking extra capital but cannot spend what you have meanwhile until the mortgage is finalized. The best thing I can think of is possibly perhaps expanding your current credit card limit? If so, then the soft/hard pull by the card would normally only cost a few points - not enough in most cases to scare the lender prior to closing.

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I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Customer: replied 11 months ago.
it sounds like I should do the car trade in now so the money is there, and try to expand my credit line (not sure that I can but will try) so the new car purchase has less impact? Do you know roughly what might be considered a "large amount" that needs to be explained? Anything over $10,000? I have $9000 coming in from a divorce settlement-
Expert:  Ely replied 11 months ago.

So it sounds like I should do the car trade in now so the money is there, and try to expand my credit line (not sure that I can but will try) so the new car purchase has less impact?

Right.

Do you know roughly what might be considered a "large amount" that needs to be explained? Anything over $10,000? I have $9000 coming in from a divorce settlement-

This is on a case by case basis, but anything about 5 to 10k would have to be explained.

Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.

Expert:  Ely replied 11 months ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!

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