We will be signing a purchase contract on Wednesday (barring something unforeseen). With that will come a couple of expenses(home inspection and earnest deposit). We have a payment shock and we have an account where those funds are deposited too. Basically each month the account balance has been increasing by at least the amount of our payment shock and those funds are what we plan on using to cover our minimum required funds.
1- Will we need to provide a letter of explanation for these expenses?
2- Will it be an issue that this account will show a decrease of funds?