Are lenders asking questions about where you got money for a down payment?
Are these asking for proof that you saved the money?
Do they ask such questions if you do an all cash deal?
I haven’t bought a house or had to apply for a mortgage in decades, so I’m not familiar with procedures nowadays.
Dive right in - the water’s fine as long as you’re already prepped for a colonoscopy. My experience was a little over five years ago while building a new home. I’m thinking it probably hasn’t gotten any better. We were using money from the wife’s recent inheritance from her mom, along with equity from the sale of the previous residence. We had to submit documentation from the trust settlement which included the sale of a rental property that was closing just before we did. There wasn’t any doubt it could be cleared thru underwriting, it was more a matter of timing and the costs associated with delay.
Cash sale is a little less troublesome since underwriting is not involved but similar paperwork has to be satisfied. A cash purchase of rental property eighteen months ago caused some raised eyebrows and requests for clarification.