More than one borrower has told us: “I Don’t WANT to show my complete bank statement. How I spend my money is my private business.”
We understand. But we don’t make the rules, and the banks do have reasons for wanting to see your bank statements.
They don’t care where you spend your money, and they aren’t making judgments about you based on where you shop or dine. They DO want to see that you aren’t making payments on a loan that you didn’t disclose. They also want to look at your deposits and verify the source of all money coming into your account.
So if you want the loan, give the bank what it wants: Complete, un-altered bank statements.
1. Include every page
2. If you get a statement in the mail, photocopy and provide it in its entirety.
3. Do not use white-out, don’t strike through any entries, and don’t make notes.
4. If the statement is an Internet printout, it MUST include the bank name, your name, your account number, your running balance, and the history of deposits and withdrawals for the months they’ve requested. It must also have the bank’s URL on the page.
5. Do NOT try to get by with screen shots – they won’t be accepted.
6. If the statement was printed in the branch, it needs the bank stamp, date, and teller’s initials on EACH page, in addition to the items mentioned in #4.
7. If you are not the only person listed on the account, the other party must provide a letter stating that you have 100% access to the funds.
If you want to avoid sharing your financial transactions:
Begin planning long before you’re ready to purchase a home. Open a separate savings account more than 90 days prior to making loan application. Lenders must verify the source of funds for any account opened within 90 days of the application date, so start early!
Deposit the funds you’ll need for a down payment and closing costs at least 60 days ahead of time. Ninety days is even better, since you’ll need to supply 2 months’ bank statements and banks don’t always process their statements on the same day each month.
Remember, cash that’s sitting in your safe deposit box or under your mattress needs to be deposited no less than 60 days before you apply. Otherwise, the bank will consider it “unverified funds” and they will not use it in determining whether you have funds to close.
The benefit to your privacy: If you have plenty of money for closing in that account, you won’t be required to share statements from your other accounts.
18170 Dallas Parkway
Dallas, TX 75287
Apply at: www.mikeclover.com