Having your bank account statements in order and avoiding the deposit traps will help to assure a smooth mortgage application and approval process.
• Always provide ALL numbered pages of each account statement. “Page 1 of 8” may be nothing more than a cover sheet. Unfortunately, underwriters don’t know that unless they see it.
• Document the source and purpose of deposits not clearly identifiable as being from your employer.
• Make copies of all checks and deposit slips and keep them together in case they’re requested.
• Track transfers, too. We’ll need statements for both accounts involved. If it is a gift from a family member, please consult with us for the proper process to follow.
• Don’t deposit currency and checks together, as this will be hard to document. It’s best not to make cash deposits unless you can clearly document the source of the funds.
Following these steps will make it easy to prove that funds going into your accounts are not borrowed. Even private loans have corresponding payments, so underwriters have to be certain to account for all debts.
When in doubt, remember we’re here to answer your questions.