A borrower has $50,000 in a joint account with their spouse who is not on the mortgage application. What documentation is typically required to use these funds?
Correct Answer
B) A letter from the non-applicant spouse authorizing use of the funds
When funds are in a joint account with a non-applicant, the lender typically requires written authorization from the non-applicant spouse confirming their consent to use the funds for the mortgage transaction. This protects the lender from potential disputes over ownership of the funds.
Why This Is the Correct Answer
When funds are in a joint account with a non-applicant, the lender typically requires written authorization from the non-applicant spouse confirming their consent to use the funds for the mortgage transaction. This protects the lender from potential disputes over ownership of the funds.
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