At what point in the process of applying for a mortgage should I sell a mutual fund that I will use for the down payment on a house?

Financial Planning, Mutual Funds, Real Estate
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2 weeks ago
67% of people found this answer helpful

You bring up a couple great points in your question.  When to sell your mutual fund?

I would sell when you know you are going to be buying place.  Once you've found the property and are about to enter escrow or already in escrow.  The risk / reward of holding the mutual funds longer just isn't there.

For the large cash into a bank accout issue.  You will likely just need to be able to show where the "NEW" money in your bank account came from.  Since it is coming from you own investment, won't really be an issue - just a little extra paperwork.   On the other hand if this was money from parents or friend or whatever - you would want to have large chunks of money 2-6 month ahead of applying for a loan. 

 

Best of Luck.

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