If I take out a cash advance 2 days before closing, will it affect my loan?
mgreen1982 asked:
I am short just 3000 for closing (as seller counteroffered less towards closing costs). I'd like to take out a cash advance, but am nervous that if I do this, my loan will be affected. My questions are as follows:
1.) When do they check your credit and such for closing? Is it right before? Right after?
2.) Is 2 days before closing enough time for the advance not to show on my credit?
3.) Will a cash advance show on my credit report? (Not a personal loan, but a cash advance)
Please do not respond with personal opinions. I am only interested in answers from people that know how/if taking a cash advance will make me lose my home right at closing.
Thanks!
To answer your questions:
1. We usually check credit at the beginning of the process, and then again no more than 24 hours before funding. Sometimes credit is checked after as well, depending on what is happening to the loan. If it is intended to be sold to another lender, then they may check your credit again.
2. It is unlikely that taking a cash advance will be reported to credit agencies that quickly.
3. I'm assuming the advance you are talking about is from a credit card… It will show on your credit in the form of a higher balance on your credit card. If you have an open credit card it is reporting on your credit regardless of balance. If you advance $3000 on a credit card, the balance will reflect it. It could take a few weeks for this to happen. If you are taking a personal advance, such as a payroll advance that would most likely not show on your credit.
If you do not have enough money to close I can pretty much guarantee the lender will know (you must have provided them with bank statements, or authorization for them to verify your bank accounts, right?) When you "miraculously" show up with the $3000 they are going to want to know where it came from. Now a days every penny brought into escrow has to be paper trailed and documented! If they determine at closing that you have done this, it could cause you to lose your home at closing.
Do not make a mistake that could cost you your loan. You should talk to your loan officer as soon as possible.
You may be able to ask a family member for a gift, and then after the loan has closed, you can take the cash advance and repay them.
But, again, do not do anything until you have talked to your loan officer.
I know how you feel. We had this same situation happen. Basically, we needed some extra money due to the fact that my husband's check did not come in when it was supposed to. What we did, since we did not want to affect our closing, is have his brother give us the money and put it in our account. Then after we closed on the house, the check came in and we were able to pay him back.
If you do have someone "lend" you money, I would have them do it in cash. We almost had a problem earlier, because his parents had paid us 1000 in a check and we had to explain what it was for. It had NOTHING to do with the hosue, but it showed up on our bank statements.
Hope this helps!