Whenever you’re buying a home, it always helps to be prepared when interacting with the mortgage lender during the closing process. One segment of the process involves reviewing your bank statements and finding any transactions that might raise questions. So, before you apply for a home loan, we recommend that you ask yourself the same questions the mortgage lender is going to ask when looking at your bank statements. If any potential issues should arise, be prepared to explain how you’ve addressed them.
Questions Ask By Mortgage Lenders
Can you cover the closing costs? In addition to your down payment, you’ll need to have enough funds in your bank account to cover all closing costs. Depending on the mortgage lender, closing costs may include:
- appraisal fees
- credit report charges
- deed recording fees
- discount points
- loan origination fees
- surveys
- taxes
- title insurance
- title searches
Did you receive a gift? All or part of your down payment can be funds that were gifted to you. However, this depends on the type of loan you’re applying for. You’ll need the proper documentation, usually a gift letter, as well as proof that you’ve received it. The transfer of these funds will show on your bank statement.
Did you recently make a large deposit in your account? If you did, it will also show on your bank statement. Many mortgage lenders will want an explanation along with documentation as to the source of the funds and why you’ve received them. Also, our underwriters will be searching for any undisclosed debt payments that aren’t listed on your credit report.
Do you have any overdrafts? If your account goes negative for insufficient funds several times, this will raise a red flag and make the lender question your ability to manage your finances properly. That does not look good for you when you are trying to take a mortgage.
Do you have enough money saved up for a down payment? This is the portion of the selling price that you will need to pay upfront at closing. H.O.M.E. Lending uses bank statements to verify that borrowers have sufficient funds in their account to cover the down payment.
Do you have regular monthly deposits? Our underwriters will analyze your monthly payroll deposits and determine if the funds will be sufficient enough to cover your monthly mortgage payments. Regular payroll deposits are a way for us to confirm that you have a stable job.
Buy A Home in Stockton: H.O.M.E Lending
For more information about the mortgage loan process, call H.O.M.E. Lending today at (209) 477-0262. Our business representatives are here to take your call and queries and provide you with the assistance you need.
