You Can't Charge That

Coming up with down payment funds and money for closing costs is a challenge most home buyers face. Depending upon the loan program being applied for, the required funds to close can sometimes be a bit daunting. There are legitimate sources for down payment... and some not so.

Lenders will review your bank and investment statements to see how much money you have available. If you're short of funds, you'll need to supply documentation for the additional funds needed. For example, if you need $10,000 to close and you only have $8,000 in your checking account, where will you find the money?

You can get a gift from a family member for the additional $2,000. You can borrow against your 401k for the funds. If you're a first time homebuyer, many state and counties across the country have special grants that you can tap. Or you can simply wait a few more weeks and a few more paychecks and save the additional money. There are really several ways to get additional funds.

What you can't do is บ้านมือสอง กรุงเทพ get a cash advance on a credit card. Regardless of what your debt ratios may be as a result. For example, if you're $2,000 short and you get a cash advance of $2,000 that could shore up your cash deficit. But a lender won't use it.

The only times funds can be borrowed in order to qualify as available cash is if the loan is secured. A credit card is unsecured. A loan against a 401k is secured. A cash advance is not.

There are several, legitimate sources for down payment funds, sources that you can review with your loan officer. But if you've been relying on a credit card advance for additional cash; you'll need to rethink your strategy.