{"id":323,"date":"2014-08-09T18:08:15","date_gmt":"2014-08-09T18:08:15","guid":{"rendered":"http:\/\/mikeclover.com\/blog\/?p=323"},"modified":"2014-08-09T18:12:43","modified_gmt":"2014-08-09T18:12:43","slug":"inquiring-banking-minds-want-to-know-where-did-you-get-that-money","status":"publish","type":"post","link":"https:\/\/www.mikeclover.com\/blog\/2014\/08\/09\/inquiring-banking-minds-want-to-know-where-did-you-get-that-money\/","title":{"rendered":"Inquiring (Banking) Minds Want to Know \u2013 Where did you get that money?"},"content":{"rendered":"

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They want to know, and if you want the loan you have to tell them \u2013 then prove it. <\/b><\/p>\n

Remember the Patriot Act?<\/b> It added a second layer of caution and curiosity to banks’ inquiries into where you got the money you’re going to use to purchase your new home.<\/p>\n

The banks’ original reason for wanting to know the source of your funds was to assure themselves that the money was not borrowed funds. They’ve looked at your income and liabilities and decided to grant your home loan based on that income and those liabilities. An undisclosed loan might make you a poor credit risk.<\/p>\n

Then along came the Patriot Act and paranoia that you might be laundering money for terrorists. You might also be a drug dealer or a human trafficker. That’s why any cash deposit of $10,000 or more must be reported to the government.<\/p>\n

There’s no getting around either the bank’s curiosity or the Patriot Act, so plan now to comply.<\/p>\n

Here’s how to simplify your life as you prepare to refinance or to choose a new home and obtain a mortgage loan: <\/b><\/p>\n

First, if you’ve been putting cash aside in a safe deposit box, under your mattress, or in the cookie jar, deposit it in the bank (in increments of less than $10,000) just as soon as you start thinking of buying a home. If you don’t already have a savings account to earmark for the purpose, open a new savings account that won’t be used for anything except your refinance or home purchase. \u00a0If you’ve been keeping extra money in your regular checking account, transfer that money into the account 90 days prior to making loan application.<\/p>\n

If you plan to sell expensive toys such as a boat or motor home to get down payment funds, do it right away and put that money in the same account. If you’ve waited too long and can’t get the money deposited at least 90 days before making your loan application, document the sale carefully. Here’s how:<\/p>\n