In this week’s Mortgage Minute Kaylynn & Kara Rozanski of Caliber Home Loans talk about when to cash out stock funds you may be using for your home purchase.

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Transcript:

Welcome to another week of Mortgage Minute. I’m Kaylynn Kelley and I’m Kara Rozanski and each week we answer real life scenarios and questions about buying in the Seattle area.

Kara: So what have you come across this week with your clients? 

Kaylynn: I have some clients who have money invested in the stock market and they’re going to use some of those funds to help with purchase, but they don’t know when they should do all of that. 

Kara: That’s a great question. The first thing I always let clients know upfront is that you have enough in your checking/savings to cover the earnest money and you should talk to your agent about how much that could be with a plan for and so forth. 

Right, that money is obviously due within the first day or two of being in contract, so it’s important that it is liquid and available beyond that, there’s no need to liquidate prior to getting in the contract. Once you are well on your way, maybe pass the inspection, go ahead and request to liquidate those funds and then get them prepared to wire. 

Kaylynn: Okay, great, so just to recap make sure you have your earnest money deposit is liquidable either in your checking account or your savings account and then 10 days or more prior to closing (or once you’ve moved past any contingencies) that’s when you should liquidate those stocks or other options.

Kara: Yeah. Absolutely. 

Kaylynn: Great, thanks Kara. Always so informative, guys. If you have a question or a specific scenario that you want us to address next week and make sure that you drop a comment below, you can obviously DMs as well, and we’d be happy to answer your specific question.

Kara: Thanks so much. We’ll see you next week.