I'm planning to buy a house, and the downpayment would come from the funds I'd get from selling some stock. Can I apply for the mortgage pre-approval and show the bank my stocks instead of cash? Or will they need to see cash, and if so, would they require that cash to be available on my account for some period of time?

  • I can't answer the first question about stock vs. cash but I would call a lender and get pre-approved and ask them what you should do. For the cash being in your account for a period of time: I think it is usually ok if you can explain where the money came from and the answer isn't "Dad gave it to me" – Alex B Mar 23 '15 at 16:26
  • If I was a bank, I might grant a conditional pre-approval conditioned on the stock retaining its value until it is sold. I would certainly retain the right to withdraw that approval for any security less stable than cash. – Nathan L Mar 23 '15 at 19:58

Yes, you can. They'll require that the funds be in your account for closing, obviously, but you can show them investment accounts that you'll be using for the downpayment. (source: I've done it)

  • Likewise. As long as they are convinced you'll be able to pay your share, they're happy. – keshlam Mar 23 '15 at 17:19

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.