You want my sister's bank account statement when I'm buying the home?

By
Mortgage and Lending NMLS#1089067

You want my sister's bank account statement when I'm buying the home? Yes, that might happen. If you are buying a home and seeking conventional financing, "large deposits" must be verified. The rules have recently eased. When bank statements (typically covering the most recent two months) are used, the lender must evaluate large deposits, which are defined as a single deposit that exceeds 50% of the total monthly qualifying income for the loan.

 

For example, if you make $4000 a month and your sister paid you back a personal loan of $2,100 which was listed as a transaction on one of the bank statements you provided, you would have to provide a written letter of explanation and your sister's bank account statement showing the withdrawal. The $2,100 is 52.5% of $4000; therefore, the rule of verifying "large deposits" would apply.

 

If you are buying a home, seek a licensed residential mortgage loan originator who you trust will review your complete financial situation. You want a loan representative that will set your expectations of what will be needed to satisfy loan conditions, providing a smooth loan process.

 

In Texas, contact Jimmy Smith for questions or a no obligation loan consultation.

 

 Jimmy Smith, NMLS#1089067

jsmith@alliancemtggroup.net, (214) 872-9091 Ofc

The information contained in this post is for general information purposes only and is not a commitment to lend. 

Comments (3)

Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Believe me I understand, deposits can drive anyone in the mortgage business crazy and borrowers often just don't get it.

Jul 17, 2014 08:52 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Jimmy

YES . . . . I can believe the request from the lender.

Good luck and success.

Lou Ludwig

Jul 17, 2014 10:00 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Jimmy,

Great advice as so many consumers don't realize how thoroughly their records will be reviewed and their documentation is all important.

Jul 18, 2014 09:08 AM