Mortgages/ Bank Statements

[pixiedustaholic]

What exactly are lenders looking for when they ask for your checking account statements for a mortgage? Are they looking for specifically how much money you spend or that you maintain a certain amount, or are they just verifying income? We use our checking account for living expenses and do not keep much at all in there. We are trying to get everything ready so we can try to get a constructon loan within the next year. TIA

 

[pezaddict231]

I think they are mostly verifying income, I know we had to explain any deposits over a certain amount that were not our normal paychecks. We also had to provide copies of all statements, including other bank accounts and investments.

 

[PrincessDadx2]

What exactly are lenders looking for when they ask for your checking account statements for a mortgage? Are they looking for specifically how much money you spend or that you maintain a certain amount, or are they just verifying income? We use our checking account for living expenses and do not keep much at all in there. We are trying to get everything ready so we can try to get a constructon loan within the next year. TIA

They are looking for two things:

1. That you have enough money to close the transaction (down payment and closing costs} plus two months of payments remaining.

2. That you have not borrowed #1, which is why you have to explain any large deposits.

It has nothing to do with your income or how much you spend. Your income is verified through your paystubs/tax returns and they don't care how much you spend. That is why you can borrow more than you can afford

 

[bucsfan1029]

I agree, mostly just looking to ensure there are no large deposits that need to be sourced. In addition though, depending on the bank they could be looking for NSF fees.

 

[malibuconlee]

Yep, wanting to make sure you haven't borrowed money from anyone to make your downpayment.

The second time we bought a home we had a downpayment saved and had it transferred from a brokerage account. Had to show where it came from. Also we had just quit our jobs for DH to take a new one. We both had large checks paying us for unused PTO. Had to show the stubs for those as well.