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Will Rates Dip Again? Unexplained Deposits – No Mas!

Will Rates Come Way Back? There is even talk that rates may dip back to previous lows, for two reasons: (1) There is evidence that the U.S. Economy may in fact hit the skids again soon. The following link to a CNBC report supports this: http://www.businesscycle.com) ; and (2) Troubles in Europe are mounting once again; major troubles with Europe’s debt will send investors to the U.S. and drive rates down.

Unexplained Deposits are killing us. We harp on this all the time, but we need to bring it up again b/c it is such a problem now. Borrowers need to know that ALL large deposits from $500 on up need to be “paper-trailed” and explained.

Large deposits from mattress money, a friend, gambling, overseas bank accounts, or anywhere else cannot only not be used for down payment and closing cost funds, they can also render an entire investment account unusable. This is a huge problem for lenders.

Even if deposits can be explained, just chasing down the explanations can cause tremendous delays. We look for these deposits at the front end of every transaction, but often we need UPDATED statements when transactions are in progress, and that is when these “deadly” deposits show up.

Borrowers beware: Do not make ANY deposits that cannot be explained. And keep ALL your paperwork relating to every large deposit. Payroll deposits are NOT an issue, however.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646