Posted on: 10th Feb, 2013 11:46 pm
Hello… I need suggestion. Just before applying for a loan, due to some emergency I had to take out from my account a major portion of my down payment. Just before I applied for the loan, I put back the cash amount. The withdrawal and putting back the money happened in a one month. I have all the statements showing the money was there for 6 months. Will this cause any problems for the approval?
It may create some problems for you. You will have have to give a letter of explanation (LOE) to the lender and his underwriter in which you may have to mention why you had to withdraw the money.
Get in touch with your lender and talk it out with. Most probably an explanatory letter will be needed stating the reason of your withdrawal.
While offering you a loan, your assets are verified. You need to give satisfactory explanations with proofs to the lender for sudden large withdrawal. Then the lender will decide whether or not to offer you the loan.