Verifying a borrower’s assets usually involves checking and savings accounts. For example if a borrower’s application says the borrower has $2500 in their bank account as assets, then the lender wants to see two months of the most recent bank statements to verify that money. That sounds pretty easy to provide the statements showing the money-- but underwriters will dissect the statements and scrutinize all deposits. It’s the deposits they want to know about, not withdrawals.
In the recent past, underwriters wanted documentation and explanations for large deposits usually over $500 that were not from payroll or automatic payment such as Social Security or pensions. But in today’s lending environment, underwriters want explanations and documentation of all deposits, no matter how big or small.
This can be quite intrusive and frustrating for borrowers. The reason underwriters want verification is to reveal if the money in the account is legitimately theirs or if it was loaned or borrowed from relatives or from another lending institution. Either of those would alter either the debt ratio or would show that the borrower didn’t really have those assets.
To avoid some of that scrutiny, list assets for the loan qualification that are fairly stable in their deposit history. For example, use a savings account that is not very fluid or one that doesn’t show much activity, or a checking account that doesn’t have a lot of non-payroll deposits. For more information about how bank statements affect your loan qualification, contact Indigo Mortgage at 505-836-5700.
Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. The company has five mortgage divisions for Residential, VA Loans, Reverse Mortgages, Construction and Commercial loans. Our mortgage broker and underwriters are certified by the National Mortgage Licensing System, NMLS # 239924.
To avoid some of that scrutiny, list assets for the loan qualification that are fairly stable in their deposit history. For example, use a savings account that is not very fluid or one that doesn’t show much activity, or a checking account that doesn’t have a lot of non-payroll deposits. For more information about how bank statements affect your loan qualification, contact Indigo Mortgage at 505-836-5700.
Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. The company has five mortgage divisions for Residential, VA Loans, Reverse Mortgages, Construction and Commercial loans. Our mortgage broker and underwriters are certified by the National Mortgage Licensing System, NMLS # 239924.
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