Another key factor of prime consideration to us is the source and adequacy of the borrower’s funds to close the mortgage. Borrowers are prohibited from borrowing monies to close on a mortgage without full disclosure of these intentions to the lender. A minimum investment of earnest money is required on all mortgages. Acceptable sources of earnest monies include savings and checking accounts, gifts from relatives, savings bonds, employer relocation pay, net proceeds from the sale of a previous home, etc. During the loan application process, we will request the borrower’s most recent two months of bank statements to verify funds available for closing. Bank statements can also be used with the VOE to determine the borrower’s ability to save any additional money needed to close the loan.

We will also send to the institutions designated by the borrower a "Verification of Deposit" (VOD). The borrower will be asked to sign the form authorizing the repository to release to a third party, the lender.

As with the VOE, this form cannot be hand carried to the depository by the borrower or their real estate agent.

It should be pointed out, that in some instances, lending institutions have developed an Informational Disclosure Authorization form that you may be asked to sign during the initial interview. The authorization form is sent to employers, banks, landlords, etc. Instead of having you sign several VOE’s or VOD’s. The form contains the same authorization to release the information to the lender.

Copyright © 1997-2007, Prime Lend America Mortgage Corporation. - All rights reserved.
Please Read our Privacy Statement
Equal Opportunity Lender and Employer
Loan programs, rates and fees subject to change without prior notice.
A federal approved Lending Institution

Design and Hosting by DMNI