MRF and Letters of Explanation

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  • #41144
    sebryner
    Member

    Hello,

    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?

    Thanks.

    #41145
    jones1214
    Member

    @sebryner No you will not need an LOE (i definitely have not been asked for one). I suggest paying with a check so if need be, you can easily show proof of where the funds went. Good Luck!!!!

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