During the mortgage process, there are typically two types of financial transactions that may occur: deposits and transfers. Let’s take a closer look at each of them:


  1. Earnest Money Deposit: When you make an offer to purchase a property, you may be required to provide an earnest money deposit. This deposit shows the seller that you are serious about buying the property. It is typically held in an escrow account until the closing of the mortgage, at which point it is applied towards the down payment or closing costs.
  2. Down Payment: The down payment is a lump sum of money that you contribute towards the purchase price of the property. It is usually expressed as a percentage of the total purchase price, and it is paid upfront at the closing of the mortgage. The down payment is typically not refundable.


  1. Source of Funds Verification: During the mortgage process, underwriting will require you to provide documentation to verify the source of funds for your down payment and closing costs. This may involve transferring money from various accounts such as your savings account, checking account, or investment accounts to your primary bank account to demonstrate the availability of funds.
  2. Closing Funds Transfer: Prior to the closing of the mortgage, you will need to transfer the necessary funds to cover the remaining balance of the down payment and closing costs. This transfer will be done with a wire transfer, and it is made to the closing agent or title company.

It’s important to note that most deposits and transfers will need to be documented. Please always consult with us prior to making any deposits or transfers in order to understand the exact requirements and procedures for deposits and transfers during your mortgage process.