The real estate process typically requires security deposits from buyers to assure sellers that they are proceeding in good faith. These deposits must be handled in a certain manner so as not to interfere with the underwriting approval process. This blog includes tips on security deposits for Las Vegas property transactions.
Location of Funds
It is essential for buyers to use personal money for security deposits. Many financing programs specifically require buyers to utilize their own money for all expenses related to the purchase. Buyers are usually asked to furnish copies of bank statements showing that the money was pre-existing in their account and that security deposits were taken from that account. Accounts should also show enough amounts to cover closing costs and down payments. Lenders will verify all of this information prior to approving the financing. Buyers not using their own funds may compromise their likelihood of receiving a loan.
Receiving Funds as Gifts
Certain financing programs allow gifts to home buyers from their family members. However, home buyers should not ask gift givers to make security deposits on their behalf. The proper process includes a gift letter, copies of bank statements from the gift giver verifying where the money originated, and then account statements from the home buyer showing receipt of the money. Complying with this process may minimize delays when underwriters evaluate the loan application.
Preparing for Security Deposits For Las Vegas Property Transactions
Buyers planning on an upcoming real estate purchase should take a few precautions to prevent issues with their loan approval. First, they should ensure all funds needed for security deposits, down payments, and closing costs are in their own accounts and are verifiable. Have several months of bank statements available. The statements should not show any unusual activity (such as deposits from undocumented sources). Finally, when making security deposits for Las Vegas property transactions, buyers should utilize money from personal accounts. If receiving gift money, ask your loan consultant for the proper steps prior to getting the gift. These precautions can prevent issues and result in easier loan approval.