Three Things Your Mortgage Lender Doesnt Want To See On Your Bank Statement

Dated: 10/05/2016

Views: 163

We've talked mortgage process here on The Shields Team blog a number of times. Today, we present to you 3 things your mortgage lender is NOT wanting to see when they review your bank statement in the loan process. 

When you apply for a mortgage, one of the given items is the requirement to document your income, and your assets, including your 'liquid' funds that you have available.  One of the things you may be required to present to your mortgage lender is the source of your down payment funds, which may mean that you will have to present a bank statement. This statement deserves your review with somewhat of a mortgage underwriter's eye; an eye that is going to be looking for red flags.  Mortgage underwriters are trained to unearth unacceptable sources of funds, undisclosed debts, and financial mismanagement when examining your bank statements. If you have any items that may be issues, it's better to fix now, rather than panic later. The top 3 items that may wave a red flag on review of your bank account are: 

  • A bank account littered with bounced checks

  • Large, undocumented deposits

  • Regular payments, irregular activity

All is not lost if you happen to have any of the above. Your lender may accept what is known as a VOD, or Verification of Deposits that lenders can use in lieu of bank statements. You sign an authorization allowing your banking institution to hand-complete the form, which indicates the account owner and its current balance.

If you have more questions about what to look for before you apply for a mortgage, contact us here at The Shields Team and allow us to introduce you to one of many trusted lending partners who can answer those questions, and put you at ease. Give us a call today! (423) 433-6517

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Wes Shields

Wes Shields, Team Owner and Listing Agent for The Shields Team at Keller Williams Realty of Johnson City Tennessee, has a long and very impressive list of accomplishments in his 10+ years in the real ....

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