Bank Statements (loan, 401k, preapproval, credit)

[dadimac77]

Hi everyone! I was planning on not buying a house for about 6-12 months but a house that is perfect for me just went up on the market. I really really want it to say the least so plan on going this week and see about getting a preapproval.Anyways, here's my issue...I was doing some research to learn about the process and seen that I will need 2 months worth of bank statements. Well, I just opened up a a bank account less than a month ago. I have always been a cash kind of guy and had my fiancee handle the bills (i would give her cash and she paid rent, utilities through her account). I had about $2000 saved up which I held in a gun safe and just got my tax refund ($5000). All of this $7000 is now in my savings account. I am worried that because of not having a checking/savings account until a few weeks ago is going to cause me to be denied. Do you think this is going to be a major issue? From my understanding, they want to see seasoned reserves? I really am clueless on this whole process!

I have been at my current job for 7 years. I have paystubs and w2's. I also have about $30,000 in a 401k. List price of the house is $81,000

Also, my fiancee (who will not be on the mortgage) has offered to give me $3000 that she got from her tax refund. Can she just give this too me and I deposit it in my account or would this be considered a gift? Can she give me a gift since she is not immediate family. How does that work? I read that you need a letter but will they need to see her bank statements then too? I don't see the reason why she just can't write me a check and I deposit it into my account tomorrow. I have given her lots of $$$ over the years so she just basically paying me back. Will I need to explain every large deposit that is in my account?

Any help is appreciated! Thanks!

[Daddys///M3]

Depending on which loan program you go with, asset reserves are not always necessary. With many first time buyer programs they are used as compensating factors to offset a higher debt to income ratio. If you are using any of this money as a down payment then they may want to see it seasoned, but again many of these first time buyer programs will allow cash in hand for the down payment. The vested amount in your retirement account can also be used as asset reserves, so you shouldn't have any problems.

[ChipL]

Don't concern yourself too much about the 2 months seasoning. Seasoning of funds can be as simple as showing that the $5000 is from taxes. The other $2000 may be a problem, but I've seen where a simple letter from the borrower stating that it's "mattress money" suffices.

Job history, and your being able to prove that income, along with the amount of money in the 401k...all are a definite plus.

My first impression for you, loan-wise, is an FHA mortgage. 2.25% down and even that can be covered by the seller giving 6% in seller concessions coupled with a down payment assistance program.

Between your savings, the possible use of 401k money and seller concessions, the money from your fiance won't be needed (she can't gift it to you anyways).

Your next step needs to be to get to a lender or a broker to get your credit pulled and your debt/income ratios figured out.