During the underwriting process, what does the term 'seasoning' refer to?
Correct Answer
B) The length of time funds have been in the borrower's accounts
Seasoning refers to the length of time funds have been in a borrower's accounts. Underwriters look for seasoned funds to ensure down payment and closing cost funds are legitimate and not recently borrowed, which would affect the borrower's true debt position.
Why This Is the Correct Answer
Seasoning refers to the length of time funds have been in a borrower's accounts. Underwriters look for seasoned funds to ensure down payment and closing cost funds are legitimate and not recently borrowed, which would affect the borrower's true debt position.
More Mortgage Knowledge Questions
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