On the path most loan officers describe, you're selling roughly 90–120 days before closing — sale, transfer, then a 60–90 day seasoning period, all before your offer is even competitive. On the documented convert-at-close path, you're selling on closing day. Same house, same dollars, a quarter of a year of difference in when you give up your position.
| Milestone | Liquidate-and-season path | Convert-at-close path |
|---|---|---|
| T-minus 120 days | Sell crypto (taxable event now; market exposure in cash begins) | Hold position |
| T-minus 90 days | Funds transferred to bank; seasoning clock starts | Hold position |
| T-minus 60–30 days | Funds seasoning; you're in cash whatever the market does | Verify wallets; Proof of Funds in ~15 min; offer as cash-strength buyer |
| Offer | Funds finally "usable" | Offer already made |
| Closing week | Standard close | Conversion executed at closing; documented wire direct to escrow |
| Closing day | Keys | Keys; taxable event lands here, not in month one |
Three things, in ascending order of pain: the tax timing (gains realized on the lender's schedule, not yours), the exposure (60–90+ days in cash — fine if the market drops, brutal if it runs), and the house (while you season, verified buyers are making offers). The left column isn't wrong for everyone — if your records are already a mess, it may genuinely be the simpler path (see when seasoning still applies). But it should be a choice, not a default you were railroaded into.
Sourcing instead of seasoning: verified ownership, conversion at closing, one wire to escrow. Full explanation: crypto down payment seasoning, explained. Cash buyers: the left column never applied to you at all — here's the whole flow.