Escrow Deposits For Monadnock Region Home Purchases

The real estate process usually involves one or more escrow deposits from buyers to assure sellers that they are acting in good faith. These deposits must be handled in a specific manner in order not to delay the underwriting approval process. This article offers details on escrow deposits for Monadnock Region home purchases.

Source of Funds

It is important for buyers to utilize their own money for escrow deposits. Many loans actually require buyers to use their own money for all expenses connected to the real estate purchase. Buyers are typically asked to provide copies of bank statements demonstrating that the funds were pre-existing in their account and that escrow deposits were taken from that account. Account statements must also show enough money for closing costs and down payments. Lenders will confirm all of this prior to approving a loan. Buyers not using their own money may impact their ability to obtain a loan.

Receiving Money as Gifts

Some financing programs allow a certain percentage of funds to be gifted to buyers from family members. Even so, home buyers should not ask family members to make escrow deposits on their behalf. The proper process involves a gift form, copies of account statements from the family member verifying where the money came from, and then bank statements from the buyer showing acceptance of the money. Complying with proper procedures will minimize issues when underwriters process the loan application.

Preparing for Escrow Deposits For Monadnock Region Home Purchases

Buyers contemplating an upcoming home purchase should take a few precautions to reduce delays with their mortgage approval. First, they should make sure all funds needed for escrow deposits, down payments, and closing costs are in personal accounts and can be documented. Keep several months of account statements on-hand. The statements should not show any unusual behavior (such as large cash deposits). Lastly, when making escrow deposits for Monadnock Region home purchases, buyers should utilize money from documented accounts. If expecting money as a gift, ask your mortgage advisor for the correct procedure before accepting the gift. These precautions may prevent issues and result in quicker underwriting approval.