Earnest Money & How it can Affect Your Home Loan

Well I had an exciting call from a buyer this morning She just went under contract and was getting ready to deposit her earnest money and she was wondering, "Hey, you know, if I can deposit a personal check anyway could I just write that check from my credit card you know have a little bit more money available?" Of course, I had to ask her, "Well do you have a loan?" If you don't have a loan it really doesn't matter, the title company is going to take your check but if you do have a loan writing it from a credit card company could actually derail your loan and cause problems for getting approval

The reason for that is that the lender has to do what's called sourcing your money so they have to be able to show that the source of the money is actually your money If you had to say transfer from savings to your checking account that would be okay because you can show that transfer with bank records but you can't write it from a credit card company So use your own funds and congratulations to all you new homeowners out there