Question about Bank Statements Requirement

I believe what they are talking about is not your normal payments or deposits but rather the unusual amounts like a 15K deposit or withdrawal that doesn't appear to be a paycheck or payment for a credit card bill/rent etc. Normal withdrawals for spending aren't what they are looking for.

keepnireal, ask the underwriter for your loan to clarify since the criteria maybe different for different lenders' underwriting dept. In my case, it was anything over $1000 for the 3-4 month period before the request for information (as I recall).

My lender required an explanation for any deposits greater than $3500 on my bank statements for my recent refinance. My understanding is their objective is to verify you do not have or are incurring any other debt obligations (borrowing money and depositing it into your account). They will also review for patterns such as paycheck deposits and normal payments for expenses.

The bank will provide you with a list of the withdrawals/deposits that they wish to receive clarification/explanations for. You are not expected to provide information without a specific request.

Thanks this is all very helpful. :)

"My lender required an explanation for any deposits greater than $3500 on my bank statements for my recent refinance."

WHAT?

Seriously?

A $4,000+ weekly deposit is pretty standard for payroll direct deposit these days.

And anything up to $10K is a pretty standard deposit for your average consultant.

I just closed a month ago, and I had to explain any deposit over $500 (not including direct deposits). I had to provide receipts, check pics and explanations for 3 months. They didn't care about withdrawals.

That is SUCH bullshit.

At that point you tell them it's none of their damn business.

I had to deal with the same thing for a refinance. A banker called asking me to "explain" a $3,000 deposit. I told him it was a gift.

"From whom?" he queried.

"A man," I replied.

"Could you be more specific?" he pressed.

"A really NICE man," I responded.

Getting impatient, he asked "For what purpose?"

I told him "Because I gave him a really nice blowjob."

I heard an audible sigh on the other end of the line, and a click.

I got no further questions from the bank.

NYCMatt, did you get the loan or did they blow you off?

"I like to shop, travel and dine. I always pay in cash and I hate receipts. I'm just wondering how much I spend before they tell me I have to write a letter explaining what I did with my own money.

This sounds like you might be doing something illegal.

It would be nice to blow off the lenders the way NYCMatt related, BUT when you are the borrower and the lender is the one with the $$$,
then you have to eat crow unless you are ready to walk away from your deal and not purchase the RE you have made a winning offer on.

Believe me, there were many times I was very aggravated by the many "non-stop" requests for info by the underwriting dept. However, I wanted to be able to buy the property I decided upon and as much hassle and work as it was at the time, it eventually worked out in the end.

Remember how aboutready's financial statements were so difficult for the bank underwriter to understand, and it was so difficult for her to only put 5% down on her new Williamsburg condo. (This must have been before the windfall she received from the lawsuit that caused everyone else's rents to spike.). It was so funny, remember, how the bank thought that her husband owned the whole law firm. Oh such problems. Woe is she.

beating a dead horse?

Frustrated much?

@keepnitreal: Typically the underwriters will not be concerned with large withdrawals, however out of the ordinary deposits of any amount generally need to be substantiated. What "out of the ordinary" is, may be up to interpretation.

If you received direct deposit from your employer, but you have a cash or check deposit of $500, they will most likely look for the source of these funds. Something in the form of a copy of the deposited item, or the statement from the bank where the funds came from showing the item being withdrawn.

Underwriters will request to see full statements (include even blank pages) for the assets in your disclosed accounts from up to 60 days prior to application. For example, if you applied for a mortgage today, July 30th, you would need to provide May and June statements. Any unrecognizable deposit during that time can be questioned.

Keep in mind, asset documents cannot be older than 60 days. Using the example above, if your mortgage doesn't close by August 30th, you would need to provide updated assets statements for July and August on September 1st. All deposits during that time would also be reviewed.

Hope this helps.

they are talking about large deposits, as to cover their bases for anit-money laundering reasons and to ensure that the deposit is actually coming from you the client and not some random person.

james.mcpartland@bankofamerica.com