Applying for Mortgage... Gambling Charges?

[doublek1229]

My wife and I are currently applying for a mortgage for our house. They are asking for 2 months of recent bank statements. In the last 2 months I have deposited $5,000 from gambling winnings, and there are roughly 8 deposit transactions totaling $2500 or so.

I am suddenly very scared/nervous that this will make us not eligible for a mortgage. I assume they are going to question what these charges are, and how I made the deposit of $5000.

Does anyone have advice?

[sourtwist]

LOL. Some grown ups have no imagination.

[sourtwist]

...

[TheMoneyShot]

Mortgage lenders have a protocol when loaning funds for a home. The main aspect is your credit score. If it's over 700+ they could careless about those transactions. They are looking for guaranteed W-2 forms of the money you're making yearly. Everything else is secondary... I wouldn't worry too much.

[Sawyer]

If you're a good gambler, then you must be able to buy the house without mortgage.
Mortgage sucks man. Mort means dead you know

My advice is,
be patient, wait, stay in rent for some time, then buy the house in cash. That's what I did. No mortgage, no stress. You can never know how your financial situation will be after 5 years.

Einstein said, compound interest is the most powerful thing in universe. In mortgage, compound interest works against you. Make good investments and make the money and compound interest work in your favor.

[Bosseman22]

All they can do is ask where you got it from. happened to my sister she had 50000 in account and the bank asked where you get it. did you pay taxes on it. was it a gift from a relative? did you pay taxes on it? you sell something? I don't think 5000 is that big a deal

[Hareeba!]

One bank account for general use and household expenses.

A separate one for punting purposes. Preferably at a different bank.

[Hareeba!]

My advice is,
be patient, wait, stay in rent for some time, then buy the house in cash. That's what I did. No mortgage, no stress. You can never know how your financial situation will be after 5 years.

Einstein said, compound interest is the most powerful thing in universe. In mortgage, compound interest works against you. Make good investments and make the money and compound interest work in your favor.

Rent money is just as dead money as is interest money.
Compounding can work for you on the value of a home you own but only against you on one you rent.
You pay tax on the interest you earn but not on the capital growth of your home.
Many who delay end up never buying their own home.

[GigaOuts]

I have no credit, and I was told no credit is worse than bad credit. I was told by few people that I have no chance of mortgage loan being unemployed for over few years. My agent recommend a mortgage specialist to me who find all the loopholes. I just have to put down 1/2 down payment for the house & I was approve without problem.

[relaaxx]

owning is not as great as it use to be. normal expences and even more TAXES make me think it's better to rent now. have to go back at least 10 years. if you were lucky enough to buy then,great. but to buy now i think is a mistake. of course there are exceptions. a great deal on a house you really want is probably worth the extra money you will always have tied up in your house.

[Sawyer]

Rent money is just as dead money as is interest money.
Compounding can work for you on the value of a home you own but only against you on one you rent.
You pay tax on the interest you earn but not on the capital growth of your home.
Many who delay end up never buying their own home.

Rent money is dead money, that's right but it's not bad as mortgage. If you're able to buy a house in cash (no mortgage), then renting for few years is a good option.

I bought my current house with cash money, zero mortgage. Stayed in rent for 2 years. Of course, money I spent on rent went to toilet flush but still it's less then mortgage cost. Mortgage sucks man. Glad I don't have any mortgage etc.

If you have a good income, if you can save/build money then staying in rent for few years is a much better option then making yourself slave to mortgage.

[Hareeba!]

Rent money is dead money, that's right but it's not bad as mortgage. If you're able to buy a house in cash (no mortgage), then renting for few years is a good option.

I bought my current house with cash money, zero mortgage. Stayed in rent for 2 years. Of course, money I spent on rent went to toilet flush but still it's less then mortgage cost. Mortgage sucks man. Glad I don't have any mortgage etc.

If you have a good income, if you can save/build money then staying in rent for few years is a much better option then making yourself slave to mortgage.

Sorry mate, but I've gone through all the numbers on this exercise many a time over a period of 30+ years and I just can't agree with you at all.

Maybe things are different in the US but a mortgage is not the dreadful ogre you make it out to be. Especially if you are able to make additional reductions to it when able.

[jjgold]

no

they do not care

just want balances

[Microphone]

Sorry mate, but I've gone through all the numbers on this exercise many a time over a period of 30+ years and I just can't agree with you at all.

Maybe things are different in the US but a mortgage is not the dreadful ogre you make it out to be. Especially if you are able to make additional reductions to it when able.

I agree with Hareeba!, done the math too....with the interest write offs etc., there's nothing worse about it. Needless to say though, I have just 8 years left on mine and as Casey Kasem said "we're counting 'em down."

[relaaxx]

don't need the math in my case. i bought the house years ago. what it cost to own a house in the US now compared to 10 years or more ago is incredible. bought in 1988. i pay almost 3xx the taxes and insurance even adjusting for inflation. plus upkeep. if I also had a mortgage it would be tough when your young and starting out. what you can recoup from tax returns is small compared to paying property taxes. doesn't mean I would not buy now if I was young and starting out in life. just not the deal it use to be. not even close. not here in the US. not in the area of the country I live in.

[Chief Wahoo]

My guess is you are screwed. Banks source deposits to makes sure money is legitimate and to make sure money is not from an unapproved source such as a loan from a friend that could affect your ability to repay on the new loan. Only way around this is if getting a non Fannie / Freddie loan or deposit total less than 25% of your gross monthly income.

My wife and I are currently applying for a mortgage for our house. They are asking for 2 months of recent bank statements. In the last 2 months I have deposited $5,000 from gambling winnings, and there are roughly 8 deposit transactions totaling $2500 or so.

I am suddenly very scared/nervous that this will make us not eligible for a mortgage. I assume they are going to question what these charges are, and how I made the deposit of $5000.

Does anyone have advice?

[Seattle Slew]

You are worried about absolutely nothing. They don't care and won't ask.

[sourtwist]

My guess is you are screwed. Banks source deposits to makes sure money is legitimate and to make sure money is not from an unapproved source such as a loan from a friend that could affect your ability to repay on the new loan. Only way around this is if getting a non Fannie / Freddie loan or deposit total less than 25% of your gross monthly income.

hey chief I hope you are not the spokesman for your tribe. Please refrain from making asinine comments in the future. Thanks

[Bill Dozer]

My wife and I are currently applying for a mortgage for our house. They are asking for 2 months of recent bank statements. In the last 2 months I have deposited $5,000 from gambling winnings, and there are roughly 8 deposit transactions totaling $2500 or so.

I am suddenly very scared/nervous that this will make us not eligible for a mortgage. I assume they are going to question what these charges are, and how I made the deposit of $5000.

Does anyone have advice?

I'm no mtg expert but knew of someone in the same position. If it's FHA you probably should be worried IMO. You'll probably have to explain them and they go through everything. A co-signer and a quarter point more was his outcome.

[tony_come]

Tell them

None of your damn business

[mtneer1212]

Just tell them you sold some old baseball cards.

[goduke]

Depending on the type of mortgage you will have to explain the deposits if they are a certain percentage of your overall gross income from your job. Not exactly sure the percentage. I'm not sure if most of these people haven't done the mortgage process in awhile but it's alot more detailed and you're probably going to run into some crap. If I were you I would wait till the months passed with those transactions. If I remember correctly it's 3 months of statements. My gf has been in the mortgage industry for the last three years and knows alot but is sleeping at the moment. Pm and remind me tomorrow and I will get more detailed info for you

[Optional]

What would happen if he just told them the truth?

[Boner_18]

Best rent vs. buy calculator out there... http://www.nytimes.com/interactive/2...ator.html?_r=0

basically if you're staying it makes financial sense to buy.


as for the gambling, make something up, if they even ask. Ebay, craigslist, gift, etc... 5-7.5k shouldn't move the needle, even on a 200k 3% down FHA.

[JayZ]

If they are not marked as gambling credits I doubt there is any issue.

It is different in countries where there will be clearly identifiable gambling transactions on the statement - bookies' names etc. Then a separate bank account is advisable.

[grease lightnin]

A couple things....

Mortgages in the US charge simple interest, it doesn't compound. As low as rates are, it makes sense to buy, if like Boner said, you stay long enough to recoup closing costs.

Look at the payment on a 15 yr, 20 yr, and 30 yr....you'll be surprised. You pay a lower rate for a shorter term, and build equity much faster.

As far as the question about your bank statement, I think Bill is correct in saying that if an FHA loan is what you're mortgage broker has you apply for, there will be more scrutiny into your bank statements, etc... You are better off putting 20% down, going with a conventional loan, having less scrutiny into your bank statements, etc, and avoiding private mortgage insurance (a monthly cost that is there for the life of the loan on FHA).

[jjgold]

Seems grease lightning hit the nail on the head

If you buy a home you must hold for 10 years at least

[sourtwist]

Guys enough with the advice, the guy isn't even paying attention.

[grease lightnin]

Seems grease lightning hit the nail on the head

If you buy a home you must hold for 10 years at least

Meh. Maybe 5 if you put the minimum down, have a flat real estate market and pay pmi on a 30 yr. The more you put down, the shorter the term, etc, the shorter that will be.

But let me ask this...how long does it take you to recoup the cost of renting?

[stevek173]

They will ask about any deposits over $1,000, this is standard underwriting protocol these days. You will only have to "source" (provide a paper trail) for it as long as it is part of your money down, otherwise a simple letter of explanation should suffice. If your money down (3.5% FHA, 5% Conventional minimum investment) is coming from a different source that you have an established paper trail for you should be fine, but if you are planning on these deposits being part of your money down you're going to have to find something else, gifts from relatives who will not be occupying the subject are a good way to go.

[jjgold]

If you pay off a broker they might push you through or they use to do that

[temple2010]

tell her the truth, say you hit a 6-team parlay. She'll probably wind up blowing you and giving you your mortgage

[stevek173]

That was before RESPA, Gold. Get with the times.

[jjgold]

Stevie work with me here I know you're in the mortgage business and I can make you a nice cash offer

One hand washes the other

[opie1988]

I never seem to have these issues.

I guess every motherfukker but me wins here, huh?