The home buying process typically requires one or more earnest money deposits from buyers to assure sellers that they are acting in good faith. Deposits should be submitted in a certain manner in order not to interfere with the mortgage approval process. This blog includes details on earnest money deposits for New Hampshire property transactions.

Source of Funds

It is essential for home buyers to utilize personal money for earnest money deposits. Many loans actually mandate that buyers use personal funds for all expenses related to the purchase. Buyers are usually asked to submit bank statements verifying that the funds were already available in their account and that earnest money deposits were withdrawn against that account. Bank accounts must also display enough funds for for what must be brought to closing. Mortgage companies will confirm all of this information prior to approving the financing. Buyers not using personal money may compromise their likelihood of obtaining a loan.

Gifted Funds

Some types of financing allow gifts to buyers from family members. Even so, buyers should not have family members submit earnest money deposits for them. The recommended process involves a gift letter, copies of bank statements from the gift giver showing where the money originated, and then bank statements from the buyer displaying acceptance of the gift. Following proper procedures may minimize issues when underwriters review the loan application.

Preparing for Earnest Money Deposits For New Hampshire Property Transactions

Buyers planning on a future real estate purchase should take a few precautions to minimize delays with their mortgage approval. First, they should make sure all funds saved for earnest money deposits, down payments, and closing fees reside in their own accounts and are verifiable. Keep several months of bank statements on-hand. The statements should not display any unusual transactions (such as large cash deposits). Lastly, when submitting earnest money deposits for New Hampshire property transactions, buyers should utilize funds from personal accounts. If accepting gift money, ask your financing consultant for the required steps before accepting those funds. These precautions will minimize problems and lead to easier mortgage approval. For additional information on home financing, contact Donna DuFour at Accurate Title via phone at 800-639-4405 or email