Bank Accounts And Bank Statements And Home Loan
One of the requirements you need to provide your mortgage lender is two months bank statements as part of the documents that is required. Mortgage lenders will carefully analyze 60 days of bank statements when processing and underwriting your mortgage loan application. Things mortgage loan underwriters will look for in bank statements are irregular deposits and insufficient funds. A bank overdraft in the past 12 months can be a deal killer. Mortgage underwriters really frown upon bounced checks and overdrafts in bank statement. If you have a bunch of overdrafts in the past 12 months, you may not be able to use your bank statements but may resolve this issue by adding yourself to another bank account to qualify for home loan. We will cover potential solutions for mortgage loan borrowers who had issues with their bank statements in the past 12 months and if there are no solutions, then adding yourself to another bank account to qualify for home loan may be your only option.
60 Days Of Bank Statements Required By Mortgage Lenders
All mortgage lenders will require 60 days of bank statements. When you provide 60 days of bank statements to your mortgage loan officer, your mortgage loan officer and/or mortgage loan processor will carefully review your bank statements. One of the first things your loan officer will review in your bank statements are deposits. Regular deposits such as direct deposits from your employer is fine. However, your loan officer will be reviewing any irregular deposits that are larger than $200.00 and will question you where that money came from. If the irregular deposit came from a source where it cannot be documented, that large irregular deposit cannot be used as verified assets and will be deducted as available funds that can be used for closing your home. For example, if you had a one thousand dollar deposit and that money was cash for doing a side job, that one thousand dollar cash deposit cannot be used and counted towards seasoned funds. Larger irregular deposits and cash deposits needs to be seasoned in your bank account for at least sixty days in order for you not to provide the source of the deposit.
Overdrafts In Bank Statements
Overdrafts are taken extremely seriously by mortgage lenders. Mortgage lenders do not want to see any overdrafts in bank statements in the past 12 months. Whether an overdraft is five dollars or a thousand dollars, overdrafts are treated the same way by mortgage lenders. As mentioned, mortgage lenders want to see sixty days of bank statements from mortgage loan borrowers. Providing 60 days bank statements and not having any overdrafts in the past 60 days will not get you off the hook when it comes to overdrafts. If you provide the mortgage lender 2 months bank statements and you do not have any overdrafts on your bank statements in the past 2 months but you have had bank overdrafts in the past 12 months, your mortgage lender will find out that you had bank overdrafts in the past 12 months when you provide them with 2 months bank statements? How can they find out? When you provide your mortgage lender two months bank statements, there will be a column on your actual bank statements that will state year-to-date-overdraft charges. Even though the specifics of the overdrafts will not be posted on your most recent bank statements, the year to date overdrafts charges will and the mortgage lender will know that you have had bank overdrafts in the past 12 months.
Solutions To Overdrafts In Bank Statements
If you do not have any overdrafts in your bank account in the past 60 days but do have overdrafts in your bank accounts in the past 12 months, then try submitting 60 days of bank statement printouts from the bank in lieu of the actual bank statements. Most mortgage lenders will take bank printouts in lieu of actual bank statements. Just go to the bank teller at your local bank and ask them to give you 60 days of bank printouts and that you need them for your mortgage loan officer and make sure that the bank teller signs, stamps, and dates every page of the bank statement printouts. Why bank printouts in lieu of actual bank statements? With bank printouts, the year-to-date-overdraft fees are not listed so in a way is a don’t ask don’t tell policy. The bank print outs will just list the deposits, withdrawals, and ending balances and that is sufficient for mortgage lenders.
Adding Yourself To Another Bank Account As Solution
There are situations where a mortgage loan borrower has tons of activities on their bank accounts and have multiple overdrafts and irregular larger deposits that cannot be sourced and their bank statements looks like a road map. Sometimes it may be the best interest of the mortgage loan borrower by not submitting such bank statements and risk killing the mortgage loan. It is not illegal to not disclose your bank statements that you will not be using to qualify for the mortgage loan. On situations like these, it may be best by adding yourself to another bank account to qualify for a home loan. You can ask a family member such as a spouse, child, parent, or even business partner to see if adding yourself to their bank account as a joint account holder is possible. The other party will add you as a joint member of their bank account. After they added you on to their bank account, you would get a bank statement print out from the bank teller and have the bank teller sign, date, and stamp all pages of the bank statement print outs. You will also need a letter from the main bank account holder that you have full access to the bank account. As for the funds required to close, you can always get a gift from a family member and have those funds deposited on your bank account and make sure the donor of the down payment signs a gift letter stating that the gift funds is a gift and will not be paid back after closing. If you run into a situation where your bank account is a mess and need to qualify for a mortgage loan, please contact me at 262-716-8151 or email me at email@example.com.