Down Payment Mistakes That Can Postpone a Transaction

OK, you've finally scraped up the money for a home's down payment. Don't let an innocent mistake with that money postpone your closing. Be warned against these seemingly harmless mistakes:

• Waiting to the last minute to make a large deposit.Most lenders will look at your last two months of bank activity before final approval and large deposits right before closing can givethe perception that your financial stability is inconsistent. Make large deposits outside of a 60 day window.
• Stashing money in another person's account.Your down payment shouldn't be coming from another person's account. It's OK if it is coming from a joint account, so long as both of the people on the account are also on the loan application. The lender wants to ensure that the applicant is the one coming up with the down payment funds.
• 11th hour consolidation of funds.If you have money in multiple accounts, don't wait until the last minute to consolidate them. This can create a hard to follow paper trail for your lender and can lead to delays. Best to consolidate funds a 1-2 months before you apply for the loan.