The Veridian Blog

Q: I have plenty of funds to put down about 40%, but it is spread out amongst a half-dozen different brokerage, checking, savings and CD accounts.   If I have to consolidate it all into one account, can I do it at the last minute to maximize interest income?”

A: You are free to do what you want.  However, the lender will be concerned that any large recent transfers might be undisclosed debt obligations or gifted funds.  In addition, transferring from account to account can be very burdensome for you because you will be required to paper trail everything – deposits and receipts - and establish 60-day seasoning for the stated funds.  To make things even more difficult, some lenders still do not accept internet printouts unless they state the borrower's name, address and account number (which banks today rarely do because of identity protection).  So with some financial institutions, you may have to call to have a proper statement mailed or faxed.  All this takes time, and in a purchase transaction, time is a premium. 

Towards the end of escrow, I recommend wiring funds directly from one account into escrow.  That is the easiest way to establish and prove a paper trail of money.  And more importantly, it is the fastest way to transfer when time is of the essence.