Seasoning your funds is all about how long your money needs to be in your bank account before you use it for your down payment and closing costs. Lenders check this to make sure the funds aren’t just appearing overnight. They want to see that you’ve managed this money over a set period, which shows you’re ready to handle the financial commitment of buying a property.
Most lenders will ask that your funds be ‘seasoned’—already in your bank account—for a minimum of at least 60 days or more. This helps us confirm the money is truly yours and wasn’t borrowed temporarily to inflate your financial standing.
Does your account show large deposits that are not your payroll deposits? We will want to know and prove where that money came from. If you’ve received money from selling stocks or a relative gives you a gift, you’ll need to provide a gift letter or proof of your asset sale.
Why are seasoned funds so important? We need to see that borrowers are financially stable and not faking it to look good on paper.
Start seasoning your funds early. It may be a good idea to put your money in one or two of your accounts and leave it there. Once the money is in the account, leave it alone. Don’t keep transferring in and out of the account. Keep your financial profile clean and easy - avoid large purchases and don’t take out additional loans.
By the time you’re ready to make an offer, your funds will be fully seasoned.