Assets come in many forms and fashions (literally). You have the checking/savings, Certificate of Deposits, Retirement Accounts, Stocks, Bonds, etc... It's important to know what you're looking at so that you can submit the correct documentation. The goal is to receive the least amount of conditions as possible!
Here a few items to check for when looking at Bank Statements or Verification of Deposits:
1. Look for at least 2 months bank history when verifying "seasoned" funds to close or reserves - if the account only shows a month or they don't have another month they need to provide a paper trail for the money that was deposited.
2. The borrower only makes $2,000 dollars a month, but shows over $2,000 a month going into the bank- Provide a paper trail for these funds. Gifts, shared accounts, tax refunds, bonuses, etc... are pretty easy to trace. If it's a loan provide the documentation for the loan agreement (depending on what program your using), so that the payments can be counted in the DTI.
3. The VOD is not stamped, signed and date by a bank official
4. 2 month average needs to be completed
Retirement funds, Certificate of Deposits and Stocks & Bonds will be discussed tomorrow.
If you are in need of mortgage training and you are looking to learn technique and theory than contact Alpha Mortgage Training. Our Courses were written by a team of mortgage underwriters with a combined 58 years of conventional and government experience. Our courses will not only help you produce more effective loans, but they will also help you increase your closing ratio.
Comments(8)