Originally Posted by kevinbahnz
Off topic but I had recently applied for a mortgage and I said that part of my DP was $10k in cash and that raised a flag to them. They started questioning me where and how I got the $10k, is it stashed under my bed? LOLZ It's not even a lot of money.
In this case, it's not the cash itself that's an issue. Mortgage lenders want to know exactly where liquid funds (generally it is in a bank account...) are coming from simply to make sure you're not getting money from other people to help pay for your loan, etc.
They'd ask where it came from, etc, even if you deposited a $10k check from work into your account. They simply want to know of all income sources, as well as the source of your down payments.
Very standard and very common.