Why banks wont accept cash as a deposit any more

When applying for a home loan, all money to be used has to be sourced. Lenders need to see paychecks deposited into your account regularly. Any payment to be used for the deposit ought to be related to your principal source of income, or recognised as present funds. Gift funds are not always as simple to use as you would imagine: in most cases, you will need a letter from the donor demonstrating that the funds will not have to be repaid, in addition to other facts about the funding.

In case you’ve got a substantial quantity of money to use as the down payment, then you can avoid alerting your lender by depositing at least two complete statement cycles before the lender’s inspection procedure.

Those from the cannabis industry, such as from the U.S. often carry large amounts of money on hand, so it is essential to understand more about the lending stipulations before starting your application procedure. Unsourced money also called “mattress money,” can’t be utilised as funds toward your quest for homeownership. If you have saved in cash for buying property, make sure to deposit it in your bank account at least two weeks before applying for the home loan.

Thus, it’s essential to get a steady stream of income for buying a home as lenders won’t accept funds which have not been deposited into a financial institution.