Banks Statements and Your Loan Approval
FOLLOW THIS SIMPLE GUIDE TO ASSURE A SMOTH APPLICATION
Providing assets is a key element to getting your loan approved and is a big factor in the risk tolerance associated with your ability to repay your mortgage. So, if you are providing assets make sure you follow these tips.
First — You want to make sure that you provide all numbers pages of each bank account or other asset statement. Example “page 1 of 8” might only be a cover page and “page 8 of 8” might be nothing more than a blank page or an advertisement. Unfortunately the underwriter does not know that unless they can see them. Hence they need to be included. So, if your statement says 1 of 6 please include all 6 pages!
Next — Large deposits. This can be anything more than a $1,000 or leass depending on the loan type like FHA. Any time you have a deposit that is not listed as coming from your employer or other identified sources, you will need to provide documentation and evidence or “source” where the funds came from.
Why — To assure that any funds that find their way into your accounts are not “borrowed”. Even private loans can have corresponding payments and underwriters and the Investors that purchase these loans, need to assure that any debt is accounted for and included in yoru qualification ratios.
What — When you have a large deposit or transfer into your account, you will need to provide documentation such as a copy of the check, wire, deposit slip or written explaination for confirmation that the funds are not “borrowed”. This is important and a cause of much frustration and costly delays; for transfers into your account, the statements of the source account, will need to be provided and if transfers into the account the same will apply. It’s a simple matter of verifying that the funds in your account is you money and not a loan.
Planning Ahead — This is the key and although it isn’t part of your usual habit, simply get into the swing of making copies of checks that you will deposit and then put them toether with the corresponding deposit slip.
Don’t — Bunch checks and cash together to make one big deposit. This will make it hard to decipher and cause delays and a bunch or other work.
Do — Make individual deposits. This helps the underwriter see and understand what is going into your account.
When in doubt — Remember that your loan officer is always available to answer yout questions or to give advice.
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Originally published at www.kcgroupdenver.com