Prepare your paperwork for new home purchase

[Moriah Giles]

Hello friends. Upon preparing your paperwork for the bank for proof of funds... what if you do not have statements for investing and retirement accounts? Does this mean you should open a investment or retirement account with a bank first and build up a few months of activity? 

Thank you

[Samantha Cash]

If you don't have any investment or retirement accounts, but have downpayment funds in a savings account then all you would need is the statements from that account. It's perfectly fine with the bank if you don't have investment or retirement accounts, though you might want them for your long term goals (retirement). For a downpayment, the bank actually wants to see that you have the cash and they like when the money isn't in an investment account and at the risk of the stock market. They will also like to see some sort of emergency fund that's not in investment also, that way they know you can keep making mortgage payments if you have a gap in employment.