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If I were to fake my paypal balance, can lenders confirm what my balance actually is?
Depends. Is this a account with money? Or a paypal credit card?
If its a credit card it will show up on your credit report anyway. Cant hide it. If this is your source of money for the house you will need to give them permission to contract paypal and verify the money. They are not going to take your word for it.
They can and will, because you have to sign to give them permission to confirm what you are telling them.
BTW, if you are doing what I think you are trying to do, stop now. It's called fraud and it won't work anyway.
Quote:
Originally Posted by 399083453
Depends. Is this a account with money? Or a paypal credit card?
If its a credit card it will show up on your credit report anyway. Cant hide it. If this is your source of money for the house you will need to give them permission to contract paypal and verify the money. They are not going to take your word for it.
What both of these posters just said is exactly what will happen.
You cannot lie to the bank about how much money you have. Won't work. Even if you got ACTUAL money from someone else and stuck it in there to look like you have more money, you'd need to leave it there for months before the bank would ask where it came from.
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When in doubt, check it out: FAQ
PayPal does not have a banking charter and is not insured by FDIC, however, they do deposit customer funds into an FDIC insured account and your funds are insured, even when on deposit as PayPal. All this means is they are not subject fed scrutiny, but they operate as a bank in every way that I have personally observed.
If you list funds on deposit with PayPal, they will be verified. Hiding cash as an asset to gain access to specialty programs (government and non government alike) constitutes fraud.
Many government entities are viewing PayPal as an unauthorized bank operating outside of banking loopholes. I urge anyone with large sums of money on deposit with PP to use extreme caution. When the feds swoop in and freeze assets, it is not pretty. The complaints regarding this business avoiding federal regulations are many, as a quick trip to Google will show.
Bottom line - ALL funds for a mortgage loan are verified, as is their history. PayPal is a wolf in sheep's clothing. Any loan officer should be extremely cautious working with someone that asks the OP's question.
Actually. I believe PayPal's defense against the "you're just another bank" accusation centers around the fact that it doesn't do loans.... You can't go to PayPal for a car loan or a home mortgage or even a personal loan.
Despite that, I take issue with its position that it's merely a "payment processor". Fact is, it does let you keep your funds in its own account you've set up with them. And unless the new "PayPal card reader" device for laptops and smartphones works differently? Any funds you receive via PayPal can't even be routed directly to a different bank account. They have to deposit first in your PayPal account, and then a second funds transfer must be initiated by you to move them to your bank.
PayPal is trying to sit in some sort of "gray area" between traditional bank and payment processor, and for years now, it's gotten away with it. (I suspect that's only because of its ties to influential people in the traditional banking establishment.) I would think if you didn't mention PayPal at all while trying to get a home loan, it might not even come up or get looked at. But that would assume you never did a funds transfer between it and one of your other bank accounts, which 99% of PayPal users have done. (They'd be able to see the line item where PayPal was involved in a withdrawal or deposit from your checking or savings account, while looking over that one, and be alerted to the existence of a PayPal account.)
But can they contact paypal and ask them to prove the statement amounts? Does PayPal operate differently from banks in this manner?
It doesn't matter if Paypal operates differently from banks. What matters is that your lender needs to verify all assets before they let you use them for your transaction. You can only use the Paypal account if the mortgage company can verify the funds in that account. So if Paypal won't confirm your balance, the mortgage company will not let you use those funds. If Paypal will verify the funds in your account, then the lender will use the amount Paypal says you have.
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