- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
House Closing Question
Posted on 9/26/21 at 10:33 pm
Posted on 9/26/21 at 10:33 pm
My wife and I are under contract to purchase a home AND also need to purchase a $10kish used car with cash.
Do we need to wait til the closing is said and done before purchasing the car? Is the lender going to care that we have that much cash leaving the bank? It doesn’t affect our debt to income ratio, so I don’t see why we can’t.
Do we need to wait til the closing is said and done before purchasing the car? Is the lender going to care that we have that much cash leaving the bank? It doesn’t affect our debt to income ratio, so I don’t see why we can’t.
8
Posted on 9/26/21 at 10:37 pm to Gpfather
As long as you aren’t counting on that cash for the mortgage closing it shouldn’t matter.
Posted on 9/26/21 at 10:44 pm to ds1tiger
I would wait, minimum is that it would cause you more paperwork.
Posted on 9/27/21 at 6:13 am to Gpfather
If you're already in the process of closing, I would assume you've already submitted all of the financial paperwork (bank statements, credit report, etc.) So would think it wouldn't matter at this point.
If all that is yet to be done, then large transfers of cash in/out of the accounts will usually need a letter from you explaining the purpose but can't imagine itll make a huge difference for securing your loan assuming you have enough cash on hand for closing costs and/or escrow amounts.
If all that is yet to be done, then large transfers of cash in/out of the accounts will usually need a letter from you explaining the purpose but can't imagine itll make a huge difference for securing your loan assuming you have enough cash on hand for closing costs and/or escrow amounts.
Posted on 9/27/21 at 6:13 am to Gpfather
Wait
Posted on 9/27/21 at 6:27 am to Puffoluffagus
We’ve already done the credit check, tax records, and bank statements. We have enough cash to cover closing, earnest money, and all else that’s needed and also have a check larger than the car purchase coming in the account soon.
Posted on 9/27/21 at 6:49 am to Gpfather
They do another right before closing, if you can it’s easier to wair
Posted on 9/27/21 at 7:13 am to eng08
I guess. Possibly lender specific? I've never had to submit bank/financial statements a 2nd time prior to closing for my previous two mortgages.
Posted on 9/27/21 at 8:13 am to Gpfather
You are generally required to have several months of cash reserves in the bank when you close. If the purchase doesn't affect your cash requirement I wouldn't see it as an issue.
That said, I'd give the loan officer a call and make sure.
That said, I'd give the loan officer a call and make sure.
Posted on 9/27/21 at 9:12 am to Gpfather
Here's what you do:
Assuming house appraised for more than sales price, increase cost of house by a few grand (there is a limit and off the top of my head I cant remember what it is) and list it as a "flooring allowance", "roof allowance" or something like that.
Sellers dont care bc it doesnt change their bottom line.
Then that money is included in your mortgage and you get the cash to pay for your car.
Its basically financing a cheap used car for the interest rate of the mortgage.
Assuming house appraised for more than sales price, increase cost of house by a few grand (there is a limit and off the top of my head I cant remember what it is) and list it as a "flooring allowance", "roof allowance" or something like that.
Sellers dont care bc it doesnt change their bottom line.
Then that money is included in your mortgage and you get the cash to pay for your car.
Its basically financing a cheap used car for the interest rate of the mortgage.
This post was edited on 9/27/21 at 9:14 am
Posted on 9/27/21 at 11:00 am to Gpfather
Wait until it closes- You do not want the investor questioning any large withdraws. And if you need another lender quote, let me know. Might be less closing costs which mean more in your pocket.
This post was edited on 9/27/21 at 11:02 am
Posted on 9/27/21 at 1:14 pm to Gpfather
We bought a house last year, and during that time my wife’s car was being bought back by the manufacturer, but covid made the process a lot longer than usual. We told the bank up front that sometime before closing we would be buying another car and that would result in another hard inquiry on our credit. They didn’t seem to have a problem with it. We have excellent credit scores and this our second home we were purchasing and we had over the 20% down payment due to equity from the sale of our first home. I just remember we I bought the first house, they told us not to open any lines of credit before closing so I wanted to check and let them know when buying our home this time. 2009 was our first home purchase so maybe they were at little more leery at that time.
Posted on 9/27/21 at 7:56 pm to TMFBB21
Talked with lender today. He said we just need to scan him the receipt of the car we purchase, and he’ll take care of it from there with two sentences to the lender:
They needed to buy a car outright with cash. They paid $XX,XXX.
They needed to buy a car outright with cash. They paid $XX,XXX.
Posted on 9/27/21 at 10:58 pm to Gpfather
Real story I know of:
Couple buys house. Gets approved and plans on closing, let's say in 2 months.
Meanwhile, couple buys a shite ton of furniture for said house on credit, fast forward to closing date and now the bank rejects the loan due to too high debt-to-income ratio
Couple buys house. Gets approved and plans on closing, let's say in 2 months.
Meanwhile, couple buys a shite ton of furniture for said house on credit, fast forward to closing date and now the bank rejects the loan due to too high debt-to-income ratio
Posted on 9/27/21 at 11:26 pm to Puffoluffagus
quote:
So would think it wouldn't matter at this point.
10,000% WRONG
Don’t make ANY large purchases, or you risk closing being delayed or not happening at all.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News