Proper documentation of the source of your down payment funds is required when buying a home. Anti-Money Laundering laws are very particular and specific on sourcing and documenting your down payment.  Lenders need to track the paper trail for funds brought to close real estate transactions for purposes of anti-money laundering laws.  Cash and Non-Sourced funds are not acceptable.

1. We are required to "source" all deposits on your 2 most recent bank statements, for all your accounts.

2. We are required to know what amounts are being liquidating from each bank accounts, and amounts coming from a pending sale or gift funds that you are receving.  

3. We are required to prove that each account is liquidated by the amount you are using for the down payment AFTER you pay that amount to escrow.

Large Non-Payroll Related Deposits (larger than 25% of your gross monthly income) need to be documented by providing a copy of the check deposited or transfer documentation. 

Gift Funds also require sourcing. If any part (or all) of the down payment is gift, a bank statement from the Donor's account and proof of their liquidation of funds from donor is required.

Proof of Liquation of funds is satisfied by providing the most recent transaction history from your online banking website showing the account has decreased by the appropiate amount.

Lastly, Do Not Transfer Money into one account for liquidation purposes, as this will create additional documentation of new large deposits and additional proof of liquidation of funds from each of those accounts.

We don't want any of this to be a surprise you.  It's a tough love thing :)