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Mortgage lenders don't care about bank statements?
Posted on 6/3/21 at 1:05 pm
Posted on 6/3/21 at 1:05 pm
Just wanted to ask the Money Board their thoughts on this.
Currently have my home under contract to sell. Buying a new home. The proceeds from my current home will give me my down payment\closing, plus probably an extra 50k.
The first mortgage broker I was working through initially asked for bank statements and then explicitly came out and said "We don't need any further statements, you are funding this purchase via the proceeds" Mind you this was before they could see my earnest check even cleared on a statement.
Now, due to some crazy drama that I'm not getting into. We switched lenders. This lender only asked for the most recent statement. Literally only 30 days. I was under the impression they needed 60 days.
My question is this. Do they just not care, because the funds for down payment, and closing cost plus 50k in reserves are coming from the proceeds? Or are the loan officers dumb and the underwriter will end up asking for these anyway? Our first home purchase was with cash, so this is uncharted territory.
Currently have my home under contract to sell. Buying a new home. The proceeds from my current home will give me my down payment\closing, plus probably an extra 50k.
The first mortgage broker I was working through initially asked for bank statements and then explicitly came out and said "We don't need any further statements, you are funding this purchase via the proceeds" Mind you this was before they could see my earnest check even cleared on a statement.
Now, due to some crazy drama that I'm not getting into. We switched lenders. This lender only asked for the most recent statement. Literally only 30 days. I was under the impression they needed 60 days.
My question is this. Do they just not care, because the funds for down payment, and closing cost plus 50k in reserves are coming from the proceeds? Or are the loan officers dumb and the underwriter will end up asking for these anyway? Our first home purchase was with cash, so this is uncharted territory.
6
Posted on 6/3/21 at 1:09 pm to LSURep864
Different lenders have different requirements
But I can't see any reason why you'd give a shite in this situation other than for your own curiosity sake
But I can't see any reason why you'd give a shite in this situation other than for your own curiosity sake
Posted on 6/3/21 at 1:11 pm to Powerman
Honestly it's because there are a couple transactions that may cause me to have to write letters of explanation. They can be traced, and documented but I'd rather not even deal with it all that.
Just trying to know what to expect since I close on both homes in 3 weeks.
Just trying to know what to expect since I close on both homes in 3 weeks.
This post was edited on 6/3/21 at 1:15 pm
Posted on 6/3/21 at 1:18 pm to LSURep864
They certainly care
You only need 30days since it all can be traced
You only need 30days since it all can be traced
Posted on 6/3/21 at 1:38 pm to LSURep864
Refinanced my house and bought two rental properties in the last 6 months. These lenders are totally useless. They have different requirements, which is fine; but they love springing new things the day of the closing. They all do it, and it is pathetic.
Posted on 6/3/21 at 2:14 pm to AndyJ
Its not the bank statements that are needed. Its sourcing and seasoning of any funds being used. In other words, is there enough and is it being borrowed from another source. Since it is clear the sale price of your current home, the proceeds will take care of any of those issues.....
Posted on 6/3/21 at 2:25 pm to LSURep864
I just refinanced and they didn't ask for any bank statements. Though I rolled closing costs in so that may be the reason why as I didn't have to bring any cash to close.
I still find it odd as they had no idea how much money I'm spending vs income. Sure my credit report has credit card utilization. However, that's misleading. The credit utilization is based on your monthly statement balance. If you make big payments before the statement closes then it won't show up. I started doing this two months before I refinanced and verified it.
I made sure to keep my balance across all cards less than 500 which showed up in my report. In reality, it was closer to 2k.
I still find it odd as they had no idea how much money I'm spending vs income. Sure my credit report has credit card utilization. However, that's misleading. The credit utilization is based on your monthly statement balance. If you make big payments before the statement closes then it won't show up. I started doing this two months before I refinanced and verified it.
I made sure to keep my balance across all cards less than 500 which showed up in my report. In reality, it was closer to 2k.
Posted on 6/3/21 at 2:32 pm to AndyJ
quote:
but they love springing new things the day of the closing. They all do it, and it is pathetic.
That is the loan officer/originator's fault. You should never have surprises at the closing table. Often times, these things are due to them rushing to get your loan closed.
Posted on 6/3/21 at 3:44 pm to AUHighPlainsDrifter
quote:
You should never have surprises at the closing table.
Everything should be clear as day and correct on the CD. If something comes up after initial CD is issued, a revised one need to be issued right away to the borrower and the LO needs to verbally let the borrower know before that.
Posted on 6/4/21 at 2:53 am to LSURep864
We just had to show $$ in the account for what was coming out of pocket.
Posted on 6/4/21 at 11:35 am to LSURep864
Different investors and different loan types have different requirements. If you have a strong lender, they run your file through a computer system to ensure the underwriting has all they need. More important than bank statements is source of income. Statistically, people pay their mortgage ahead of all bills. As a result, if you are qualified with the money coming in and you not are behind on payments (can see this on credit report), the money in the bank is does not weigh as heavily in the decision. Bank statements are to ensure it is not illegal money coming into the account recently. I hope that gives you more clarity
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