Joe Petrowski, Right Trac Financial Group in Manchester, CT gives buyers some sage advice in the following post. If you receive income of any sort, be sure it goes into your bank account, is accounted for on your income tax return as appropriate. Not doing so could cost you your dream home.
“Child Support as Cash”
I was doing a preapproval this morning for a client that was referred by her brother. I was most of the way through the process when she mentioned that her ex-husband pays her child support in cash and has been doing it that way for the last couple of years.
I asked if she deposits the money into her checking account each month, of course she said no. She wasn’t very happy with me, when I told her we couldn’t use the income, because it is paid in cash and can’t be documented. Unfortunately, without this income she will not qualify for the mortgage she was looking to get preapproved for.
All of us in the mortgage business cringe when someone says they receive income of any kind in cash. If the income is needed to qualify, that will be a problem.
All lenders want to be able to trace the money to an account. In this case if the cash funds were deposited into a checking account on a consistent basis, we could have a shot, but if not, it just can’t be used.
image courtesy of stuart miles/freedigitalphotos.net
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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