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Several months before buying real estate, it is a good idea to "age" your money
before applying for a mortgage. Bankers like stable balances. Most lenders still require 3+ months of account statements, and a large sum that
was moved during this time will have to be explained. Thus, it's
a good idea to plan a long time in advance. Slowly and steadily build the balance in
your 401k or savings account leading up to the mortgage application. Take out that
consolidation loan six months ahead of time or buy that car the year before applying for a mortgage. A "clean" set of account
statements will make the mortgage process smoother.
After contracting to purchase a home and applying for a mortgage, move as
little money around as possible. It could delay the process and one
could lose a locked rate or fail to be approved. In rural areas or peak times, it can take 30+ days for a bank to get property
appraised, and just before closing the bank may ask for current
statements. Any large spending or asset movement will require an
explanation.
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