You've probably heard
the saying, "When you fail to plan, you plan to fail." That is
especially true when it comes to buying a home today. Underwriters are
following strict guidelines–and that means even things like bank
deposits and transfers are under scrutiny. Here's some insight on how
underwriters analyze bank statements...and what you need to know and do
(or not do) during the loan process.
Today, many banks
require an explanation and proof of source of funds for any large
non-payroll deposits that are listed on a bank statement. What is deemed
a large deposit is largely determined by the underwriter and can be as
low as a few hundred dollars. The reason for the underwriter's concern
is that an applicant may be borrowing money from individuals, or
accepting money from an interested party to the transaction, to help
with the settlement costs.
It's easy to see how this bank
requirement can create a lot of frustration, especially for people who
are used to moving money between their accounts, which many of us do
today. The key thing to remember is that anyone applying for a mortgage
should avoid transferring money between accounts or making large
non-payroll deposits during the home buying or selling period. While
that may feel like an inconvenience, the time and headache you'll save
yourself from having to account for all your deposits will be worth it.
www.CharlestonsBestRealty.com