One of the biggest changes to come out of the financial meltdown/housing market crash of 2008/2009 was in the mortgage industry. The way mortgages are given, mortgage lender salaries, and several other things were changed dramatically. The Dodd-Frank regulations implemented by the government have made it impossible to see that level of crash in the housing market again. One of the biggest regulations has to do with fund sourcing.

During the housing boom, lenders and banks didn’t really care where the funds came from to close, so long as they were in your account before closing. Today, they’re required to be ‘seasoned’. This means your regular paychecks are fine, as well as wired funds as a gift from mom and dad, because there’s a bank statement behind it to back it up or a wire transfer number to be traced. But if you’re sitting on ‘mattress money’ and plan on using it for closing, you’re in for a shock. Generally speaking, lenders want to see money they cannot trace sitting in your account for 60 days or more. Some require less, some more. This is because they want to make sure you aren’t getting a short term loan to meet loan obligations and then paying it back. They want to see you’re a responsible consumer.

If you’re hoarding a bunch of cash, that’s ok. I do it myself to some degree, it’s the easiest way to pay the pizza guy and buy girl scout cookies. But if you’re planning on using it to buy a house, you need to talk to your lender and put it in your account immediately.

So if you’re in the market to buy a home, Schedule a phone call with me to get the process started! I can help you get set up with mortgage and insurance people to make sure you’re able to buy a home and have the best coverage.

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You can also get a copy of my Home Buyers Handbook when buying to learn about the process!

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