Lenders typically require that borrowers provide two months of bank, investment or brokerage account statements to verify the sources of funds used for a down payment to buy a home. The funds for a down payment can be sourced from multiple accounts as long as the funds have been seasoned in the account for at least two months as verified by the account statements. If your down payment funds are in a brokerage account you can request account statements from the brokerage firm or download them online. We provide a comprehensive overview of the Down Payment Required for a Mortgage on FREEandCLEAR.
Additionally, if you intend to use funds from a brokerage account for your down payment it is usually required that the funds are held as cash in the account prior to applying for a mortgage. From the lender's standpoint, holding your down payment funds as stocks or other investments creates the risk that the value of those investments declines over the course of the mortgage process and you may not have sufficient funds for your down payment when it is time to close your mortgage. As mentioned above, the seasoning period for how long you hold the funds as cash in an account is typically two months and, depending on lender guidelines and your ability to provide account statements for the investment account, you may need to transfer the funds from your brokerage account into a standard savings or checking account.
We also always recommend that you contact multiple lenders to understand to understand their guidelines regarding this specific issue. You can review lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders as qualification guidelines vary. Plus, shopping multiple lenders is the best way to save money on your mortgage. You can also use our Free Personalized Mortgage Quote function to receive no obligation mortgage quotes from up to four lenders.