5 tips to Prepare your Bank statement for the Mortgage process

By
Mortgage and Lending with Ruoff Home Mortgage 234777
https://activerain.com/droplet/4hxs

 

 

 

The scrutiny of your bank statements that will take place by the Underwriter when you apply for a mortgage is much more thorough than in years past. Used to be, lenders only cared about your balance and if you had adequate funds to close, but today they will analyze every transfer, every deposit and ask that you source them (prove them).  But by preparing in advance for this scrutiny you can save yourself a lot of time and aggravation from the need to verify many things on your bank statements.

 

When you apply for a mortgage loan, the lender will ask for your last 2 months bank statements in order to verify your assets. Any monies that were in your account prior to this 2 month look back period will be considered your funds (seasoned) and no further documentation will be required. It’s these 2 months that you can minimize the need for further documentation by following these tips.

 

·         Do not make any cash deposit – Cash is an unacceptable source of funds since its origin cannot be established. If you have cash, use it for daily expenses and only deposit verifiable checks.

 

·         Do not move funds from one account to another - If you have multiple accounts and move funds, you will be required to show all these documents. These could double or triple the amount of documentation you will need to provide.

 

·         Do not have any overdrafts – This can be a killer for showing your ability to handle finances.

 

·         Do not deplete your funds – Many times clients think paying down debt obligations with excess monies will show more stability. Check with your loan officer first because many loans require what is called monthly reserves (2-6 monthly house payments in reserve). You can always go pay down the debt but you get go get the money back.

 

·         Make sure the address of record on your statement is your current address & if you have other co-account holders, you will need acknowledgments from them that you have unlimited access to all funds in the account.

 

By following these 5 tips and preparing in advance for the loan process, you will make the process a much easier one for yourself, saving the need for you to chase down extra documents to validate items on your statements.

 

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Greg Miller   
Mortgage Loan Originator 
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com

941-552-9989


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Rainer
182,937
Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area

Greg,

Great post! These tips are very helpful, thanks for sharing them with us. I will share them with clients.

Jun 03, 2014 11:39 PM #1
Rainer
106,853
Rob Marken
Bend River Realty - Bend, OR
25+ years experience in Bend

Great points for preparing for getting a loan.  These are great tips to help the loan process go smoother. Thanks for sharing. 

Jun 04, 2014 02:04 AM #2
Rainmaker
1,268,618
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Greg:  Clients typically trip-up on sending ALL the pages.  We Lenders need every last one of them, even the ones that have NOTHING but the page number on them.  Sounds crazy, but that's the rule.  This little snafu can slow down processing to a standstill ...

Greatly appreciate this post!

Gene

Jun 04, 2014 04:51 AM #3
Rainmaker
171,688
Greg Miller
Ruoff Home Mortgage - Sarasota, FL
Florida Home Loans - Conventional,FHA,USDA,VA

Trish- thanks for commenting.

Rob -Appeciate it

Gene - you are so right, page 8 of 10 was blank so they omit, but Underwriter wonders what was on it? Thanks for the great point.

Jun 04, 2014 04:57 AM #4
Rainmaker
1,436,205
Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

You might want to add make copies of the sources and the checks of all large deposits.

Jun 04, 2014 07:06 AM #5
Rainmaker
2,331,898
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Greg. Your post is so right on. Bank statement for a mortgage applications is a completely different animal these days compared to a few years ago.

Thank you for commenting on my post.

Jun 04, 2014 09:46 PM #6
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Rainmaker
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Greg Miller

Florida Home Loans - Conventional,FHA,USDA,VA
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