It’s obvious many on here haven’t bought a house before.
If a mortgage company sees a large sum of money leaving your bank account while they’re approving the loan you can be denied, especially in today’s hyper competitive market with record low loan approval rates.
But Dave, with all due respect my friend, most banks and underwriters know that the borrower has to actually live on a daily basis and that includes daily expenses for food, transportation and basic overhead bills. They take this into consideration when presenting your application before final approval.
Also, as you know, most people have both a checking and savings account (Checking account for daily expenses and savings for savings). He must have certainly kept all relevant funds in his savings account as to not throw off the final numbers from his mortgage application. Thereby allowing disposable income to sit in his checking account which would show fluidity for those funds.
Making a major purchase to the tune of a few thousands dollars before mortgage approval can certainly raise a red flag, but $200 doesn't make much of a difference unless you're actually holding very little funds on hand to begin with. If, for instance, all that epic has in his combined checking and savings accounts is $2,500, then yes $200 is substantial as that's essentially 8% of all his money. But if he has upwards of $50,000 saved, then $200 shouldn't make much of a dent. There's a standard cost of living that is definitely taken into account when evaluating withdrawals.
Remember, many of our members' comments stem from the fact that "epic" has paraded himself around here as a high roller with tons of money. When you're part of the 1%, you often don't go for FHA mortgages and shit like that. You typically pay straight cash with no contingencies or go to hard money lenders or ask for balloon mortgages. When you play in that realm, less than $5-10,000 withdrawals don't make a noticeable dent.
"
1"
