Would this simple, but strange solution for my lack of a downpayment work?

[YeaIreallydontknow]

There have been circumstances that have come up in my live that have disabled me from obtaining a down payment in time for my closing. My other bank account previously on the last statement did have the downpayment and that is with the broker. I have a NFCU LOC and could just zelle myself funds to my other account. The reporting date for NFCU LOCS are the 1st of each month. When they pull the final credit report it would be irrelevant as the previous balance would still show. I confirmed with the broker they only obtain statements at the start of the process. Thoughts?

Edited April 18, 2023 by YeaIreallydontknow

[8ball]

It might work if the loan officer really pulls you report on a set day. I don't know if they could set up an alert for changes in your DTI that might trigger a second pull so you would be gambling they don't see you tapping your LOC. 

[hegemony]

misleading your UW seems like a bad idea unless nowhere in the documents you sign do you declare you are being truthful about the sources of your funds.

 

what happened to the downpayment?

[hdporter]

OMG ... Am I the only one to receive requests for multiple statement updates (via online download) by my mortgage lender, right up until close??

 

If you're a gambler, go for it.  Seems like a good way to potentially screw the pooch badly and end up starting from scratch.

[hegemony]

13 hours ago, hdporter said:

OMG ... Am I the only one to receive requests for multiple statement updates (via online download) by my mortgage lender, right up until close??

 

If you're a gambler, go for it.  Seems like a good way to potentially screw the pooch badly and end up starting from scratch.

IDK, sounds like the OP would be getting close to committing fraud at least in spirit if not by the letter. 

[hdporter]

1 hour ago, hegemony said:

IDK, sounds like the OP would be getting close to committing fraud at least in spirit if not by the letter. 

 

That was the "badly" part ...

[hdporter]

I'm coming back to this in all earnestness.  Mortgage pricing is based on risk and the extent to which you have "skin in the game", i.e. your down payment; rates are set accordingly. 

 

Representing that your down payment was funded from savings when, in actuality, you wound up borrowing the funds, would be a VERY BIG deal to a lender, were they to become aware of it.  More than likely that would be sufficient to void the mortgage agreement and subject you to demand for payment in full or face foreclosure.

 

Now, the likelihood of discovery is ground I'm not prepared to tread on.  Mortgage lenders do watch your credit reports subsequent to close and will become aware of the large credit draw.  I can't speculate on whether that would prompt them to investigate your finances before and after closing (they certainly have pre-authorization to seek account disclosures as a consequence of consents that you will have signed).  A couple of monthly statements for key accounts would lay bare the true cash flow.

 

In consideration of any action, I always factor in the worse case outcome that has a modest chance of occurring (I discount "end of the world" scenarios, but take a scenario of loss of income for 6 mo quite seriously), and carefully weight the extent to which I might "save face" were the worse case to manifest itself.  In short, personally, I would never mess around with anything but the slightest "distortion" when it comes to closing a mortgage.

[hegemony]

On 4/17/2023 at 9:36 PM, YeaIreallydontknow said:

There have been circumstances that have come up in my live that have disabled me from obtaining a down payment in time for my closing. My other bank account previously on the last statement did have the downpayment and that is with the broker. I have a NFCU LOC and could just zelle myself funds to my other account. The reporting date for NFCU LOCS are the 1st of each month. When they pull the final credit report it would be irrelevant as the previous balance would still show. I confirmed with the broker they only obtain statements at the start of the process. Thoughts?

well? what did you do?