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Would opening a checking account a couple of weeks before mortgage application affect your loan application in any way? The checking will be used to transfer fund from savings account for down payment. Thank you.
Nope, worst case you may have to write a letter of explanation on why it was just opened and you'd need statements to show the money being transferred, but that should be it.
We opened 3 checking accts, and one savings acct in the month before we applied for our mortgage. I kept the money for our down payment in the old one, and just started using the new ones for day to day stuff, and bills. No problems at all. Some banks do run a credit check when you open the acct, so not sure how that would play in.
from an underwriting perspective it doesn't effect your score or status. as stated previously you may have to provide an explanation so you may be adding time to the process. by the way, you don't need a checking account to transfer funds to if that's the only purpose, you can execute transactions directly from a saving account. that includes certified checks, wire transfers, etc..
from an underwriting perspective it doesn't effect your score or status. as stated previously you may have to provide an explanation so you may be adding time to the process. by the way, you don't need a checking account to transfer funds to if that's the only purpose, you can execute transactions directly from a saving account. that includes certified checks, wire transfers, etc..
Thank you all so much for taking the time to answer my question. I did ask my online bank. It is an online only account. The bank does not wire funds to settlement company on the behalf of account holders. I thought for funds more than certain amount, you have to wire the fund. Is that not true? Then what is the best way to transfer large fund to settlement company? Thanks again.
I just got a certified check and the money was removed directly from my savings account. Why not just do that? The check is what is brought to closing.
Thank you all so much for taking the time to answer my question. I did ask my online bank. It is an online only account. The bank does not wire funds to settlement company on the behalf of account holders. I thought for funds more than certain amount, you have to wire the fund. Is that not true? Then what is the best way to transfer large fund to settlement company? Thanks again.
Most, if not all, settlement companies will require that you use certified funds for closing. Traditionally that's done through the buyer (you) purchasing a certified check from your financial institution. Some progressive settlement companies will accept wire transfers, but there are still a lot of traditionalists out there.
I understand that the online bank is your primary bank, is it your only one though? That's the unfortunate downside to internet banks as a whole, you can't walk into a branch office on your day of closing when your HUD-1a comes in at zero hour (which all of the LO's on this board will tell you happens more often than not) and purchase a certified check. So my suggestion would be to ACH transfer the money to your other bank (if you have one) and buy the cashier's check there. If not, talk to your online bank about options.
If you have time, and forgive me if I missed this detail, I would establish a relationship with a bank that has physical locations. Internet based banks have very clever commercials, and great CD rates, but this is a good example of the drawbacks. Good Luck!
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