photo by huberific on flickr
Tis the season, but did you know when buying a home
that your down payment must be seasoned too.
OK, Whats' that?
Salt and Peppered.... no, it's a lenders term for knowing
you personally have money sitting in an account patiently
waiting to be used in your home transaction. You know that
10% to 20% down.
The money must be in an account in your name for around
60 days, it used to be 30, but with lenders tightening the reigns,
its 60 days now.
So, if you plan on borrowing money for your down payment -
like from family or friends - remember to get it early and let it sit
in a account.
Don't be surprised if you can't buy your home because your
money isn't seasoned. Doing 100% financing is an option but
you'll probably have PMI (principal mortgage insurance) -
and you know any insurance is expensive...
which means you'll probably have to refinance again after your
money has been slow cooked to perfection.