Bought an investment property 2 months ago. Rocket Mortgage approved my cryptocurrency as the source for the down payment. Everything went through, and the mortgage has been recorded.
They recently contacted me asking for proof of funds with my Fidelity account. The down payment was around $100k, and I don’t have enough funds in my Fidelity account to prove the down payment amount they’re looking for. What can I do?
Edit: The issue is not providing the documents—I can and will. I was wondering what the repercussions are when they see my Fidelity does not have enough money as proof. Should I first let them know? Or what can I expect?
I think your real question is whether or not you have to comply, and the answer to that is yes. You signed documents at closing that indicated you’d comply with post-closing issues, and failure to do so can accelerate your loan to due and payable.
@Ray
Can I just tell them I don’t have the funds in a different account? What happens if I’m not able to provide the extra documentation they’re asking for?
Wade said: @Ray
Can I just tell them I don’t have the funds in a different account? What happens if I’m not able to provide the extra documentation they’re asking for?
Call your original loan officer. They should be able to reach out to closing and better help navigate specifically what they’re looking for. But as someone stated, they’re probably short reserves, hence asking about the Fidelity account they know exists as the easiest way to fix the problem. Actively engage, and you’ll get helpful answers—everyone wants the loan to stay as is; no one is looking to call the note.
Wade said: @Ray
Can I just tell them I don’t have the funds in a different account? What happens if I’m not able to provide the extra documentation they’re asking for?
You don’t need to provide them the proof they need; you just need to cooperate in good faith. It sounds like they made an error in their underwriting and that your crypto funds didn’t satisfy their full underwriting requirements. As long as you give them the documentation they need, you are in compliance with your post-close requirements. If those documents don’t satisfy their underwriting needs, that is their problem, not yours. But you do need to cooperate with their requests for documentation.
Wade said: @Ray
Can I just tell them I don’t have the funds in a different account? What happens if I’m not able to provide the extra documentation they’re asking for?
Send what you have and the sale of crypto documents. If they ask for other documents, send them.
It’s a post-closing quality review, and they didn’t meet investor guidelines prior to closing, which is what this sounds like. Send what you have, and they should be OK. Crypto is highly scrutinized, and it sounds like they need the web transfer docs and receipt of funds, but I’m here to help if I can.
Most likely, the loan is being reviewed for sale, and the prospective buyer either won’t accept crypto as a down payment or needs to document reserves. Document the sale of crypto and the transfer to escrow and your Fidelity account to cover either possibility.
This is their problem, not yours. They cannot call the loan due over this. You can be nice and provide the documentation they ask for, and if it doesn’t satisfy the condition, they’ll deal with the loan internally by selling it in a different pool than originally planned. This will cost them money, but again, not your problem.
