CHAPTER 3 Please Don't Do Any of These 10 y of These 10 Things The tone of this book is positive. This is the only section where we emphatically say "No" and "Don't. " 1. Don’t Deposit Large Sums of Cash into Your Bank Account Lenders need to source your money, and cash is often difficult to trace. Before making any large deposits, (deposits that do not appear to be part of your normal flow of income) ask your loan officer how to properly document that money. The lender wants to make sure that the money you’re receiving isn’t a loan that you are obligated to repay as that would increase your Debt-to- Income (DTI) ratio. Make sure that you have access to current statements for the account that money emanated from and the receiving account. If you have received a gift have your loan officer provide their institution's gift letter and guidance as to what percentage of the funds in the transaction can be derived from a gift. 2. Don’t Change Your Bank Account Lenders will always need to source your assets. A consistent bank account makes it easier for lenders to identify and track your funds. Talk to your loan officer before transferring any money to a new account. Make sure that you have access to current statements for the account that money emanated from and the receiving account. 3. Don’t Make Large Purchases Making purchases such as furniture or purchasing/leasing a new 42
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