Paying fees in cash while closing

4 Replies

I have some free cash available about 3k from a tenant who paid his last two months in cash this year. I am considering a refinance and was wondering if it’s okay to pay all the associated fees in cash? Appreciate your inputs

thanks

Originally posted by @Peter Morgan :

I have some free cash available about 3k from a tenant who paid his last two months in cash this year. I am considering a refinance and was wondering if it’s okay to pay all the associated fees in cash? Appreciate your inputs

thanks

If you're refinancing, what's your motivation/reasoning for using your own cash to pay closing fees? Hard to answer your question without knowing that first.

 

@Francois G

It saves me a trip to the bank during these Covid times, I think closing takes place in the comfort of my home so why not pay at least the partial fees with some of the cash lying at home.

@Peter Morgan

Lenders won't allow cash to be brought to the table. The money that is used for closing costs needs to be verified and sourced per Fannie/Freddie requirements . My suggestion is to put that in the bank right away and when closing time comes you can use the drive-through window and get a cashiers check. Typically they want to see 60 days history in the bank you are using. However, if you aren't required any cash to close the bank statements aren't needed. Much easier!

Someone else brought up a good point. Most of my refis I don’t have you bring any money. You might want to look at all your options. Let me know if you have anymore questions.