Profile picture for user6152628

Applying for a loan with stocks

I am on the process of applying for the mortgage. I have $50K of my down payment in checking account, $25K of the down payment in stocks.

My stock which was worth $28K dropper to 25K in the last couple of days. I still want to wait for another 10-20 days before I sell it to use it for the down payment.

My questions is  - If I am applying for the loan today and lets assume the closing day is 30 days from today - Will the lender allow me to hold my stocks until we get closer to the closing day or Is it a requirement that I should sell all my stocks as soon as I apply for the loan. Please advice!
  • April 17 2013 - Fremont
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (4)

Profile picture for CA Direct Lending
Call me any time. 
  • April 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Really, Ray? Right up until the closing docs are prepared? I don't think so. Generally, CTC is the first stage to preparing closing docs. If you work for a lender that will wait until the 11th hour and rip around making a purchase closing on time, getting an underwriter to review the liquidation, not blowing any contingency dates, meeting the closing date on time, all real estate agents and attorneys comfortable, I am in awe. Sign me up.
  • April 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CA Direct Lending
Most lenders should allow you to hold on to your stock without liquidating them right up until they order loan docs.  They hold off on doing that until you show proof of liquidation.
  • April 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The risk is yours. The lender will want to see liquidation of your stock for X amount prior to closing. Probably at least 10 days prior. You won't receive your Clear-to-Close without the documentation showing the sale of stock. How much pressure will you receive from the Seller's camp wanting to see the coveted CTC? Will you break any contingencies on the contract? Bottom line, how much risk are you willing to take on the market? We haven't seen much good in the stock market in recent days...
  • April 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.