One



Money you have in a bank account. Yes, they will verify. You will need to provide copies of your bank statements (all the pages of the statement are required).

Two

Money received as a gift. They will want a signed letter from the gifting party verifying it is a gift and no repayment will be made. Most lenders require it to be notarized also. All parties must sign this letter including the one receiving the gift and those who are providing the gift.

Three

You can borrow money against real estate, stocks and bonds, land or any asset with equity. This includes second mortgage on real estate. But you must be careful with borrowing money this way because it increases your debt ratio and may lower the amount you can borrow. You can also borrow on your 401K plan, but it is frowned upon by many lenders.

Not One

Borrowing money from family and friends. This would be considered an unsecured loan and that is a no no. This is not a good idea.

Two

Money you have stashed under your bed. No, they want a paper trail of where the cash came from.

Your best bet is to speak with a knowledgeable Home Loan Advisor who will answer all your questions and steer you in the right direction.

Hope you enjoyed reading this article,

Richard Bonomo

The Home Loan Advisor