That's what the IRS is trying to crack down on, poorly informed people thinking they can have access to their retirement funds for 60 days instead of it being time to receive a check and deposit it at a new custodian, which the IRS intended. 

Full disclosure I was a mortgage broker 7 years ago.Unless you have a close personal relationship with a local bank and have most/all of your assets deposited there then a mortgage broker is your best bet.

As a landlord giving advice to others I hear quite often that they (landlords) would rather “work” with their tenants when it comes to the Security Deposits and rent, and even the due dates, because they want to help them out.  

Wouldn't I lose this deposit?  

Employment checked out so I accepted 1mo deposit and 1st mo rent and gave keys and we signed mo to mo lease that authorizes occupany by their names, and states a total of 2 occupants.

During the last loan process with the bank, I had to explain almost every deposit and am wondering how to present this deposit to them.Please share your experience or advice.Should I have him write a letter stating the money is from him?

During a 6 week vacancy, literally the day before the new tenants came to give us a deposit, the house was stripped of all copper.

Can I use the security deposit to make repairs at this time, or only upon move-out?

The auction will be all cash, either due immediately, or maybe 24 hours, with a deposit.

The amount of the Ernest Money deposit should be between you and the seller.