Only a few years back, it appeared that even a serial killer on death row with bad credit could get a loan. Now, with credit tight due to the tightening of underwriting rules on loans and the drop in home equity, it is difficult even for the best qualified borrowers to refinance their home loans. One of the biggest sticking points that can cause delays in the approval and funding of a loan is verification of funds to close your loan if you are required to put money into escrow which is often the case in a non-cash out refinance to cover pro-rated interest, taxes or insurance.
The best account to use is a brokerage account with a money market that is not active and from which you can write checks. If you need to use a checking account that has several deposits, or worse yet, a business account with numerous deposits, the lender will require that you verify the source of all deposits meaning copies of the deposit slip and cancelled checks. This can be a real onerous process. If such accounts are not needed, there is no requirement to include them unless they are needed to show cash reserves.
I hope this helps in your next refinance. If I can be of further assistance, please don’t hesitate to contact me. You can also key into my website at www.santabarbaracpaloans.com for information on current interest rates.
