If you do…you might be able to use it in a mortgage loan!!
Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. The most common form of cryptocurrency is Bitcoin; which uses a virtual wallet identifying the account holder utilizing a coded address incorporating letters, and numbers, rather than the standard name and account number making it difficult to determine ownership.
Now, how do we document this, because you know, mortgage lenders and banks LOVE to have clients document ANYTHING having to do with a mortgage loan, right? The buyer must validate the ownership of the cryptocurrency with the most recent 60 days transaction history that clearly identifies the owner. Documentation must be provided to show the liquidation of this Space Money from the cryptocurrency account, transaction of units to US dollars, and evidence funds have been deposited into a US financial institution. Transfer and liquidation must be completed prior to the closing/funding on this homes purchase.
Are we ready for the future? They fly “cars” to work so that is exciting, just not sure where I will ride my bike…
A personal note to share: Last year my 14-yr. old son was building his own desktop computer for gaming. He did all the research on parts, watched countless video (still watches countless videos now that I think about it) and was saving his money. One day I heard him and Julie speaking, he was very upset. He shares; “dad there was an article that listed the processor I wanted to buy as the best to mine for Bitcoin and it now costs $150 more!” His disappointment was that he was so close to having the funds to buy and this moved his purchase date out. Luckily for me I have a client and friend who lives and breathes computers and was able to listen to what my son was using for parts and made a recommendation for a new processor that brought the costs back down! He quickly pulled the trigger and made his parts purchases. Who knew right, a computer processor can help you mine for Bitcoin!!??
Geoffrey Davis, The Frisco Mortgage Loan Officer
6801 Gaylord Parkway #202
Frisco, TX 75034