If you've been saving money from each paycheck in a 401(k) account, nice work!
You're saving for the future. Often, new homebuyers want to apply some funds
from their 401(k) toward a down payment. There are some fees and tax implications
for this — talk to your tax adviser to learn more — but from a mortgage perspective,
there are just a few things we'll need to document your 401(k) withdrawals.
If you decide that a withdrawal from your 401(k) is necessary, we'll need
evidence that the money is there in your retirement account. Your fund adviser or
your employer can easily deliver the proof — usually it's one or the other. Though
you should receive quarterly statements, call up and ask for your latest statement
that shows the balance and contributions.
We'll also need to see whether your retirement plan requires that you repay
the 401(k) withdrawals or not — everyone has different rules about this stuff. We'll
take that into account as we figure out how much you can afford to borrow.