A – Assets
The biggest challenge we have on almost every file is asset documentation. The Underwriter will require heavy asset documentation due to excessive deposits from the borrower. Missing documentation, such as up to date bank statements, 60 day stamped transaction history print outs and 401K statements, will really delay a loan closing.
B – Bank and 401K Statements:
Underwriting requires “all pages” from all bank statements, 401K and other asset statements. So if a bank statement says 1-5 on the top of it (for example) we need all 5 pages. Even if the last page of the bank statement says that its “left blank intentionally” we still need the page.
We have a lot of people that log into online banking and send us a transaction history print out.
Simply sending in an unsigned transaction history print out will not work for underwriting purposes. Please make sure you send us actual bank statements (when available) instead of a transaction history print out from online banking.
If you are sending a statement mid-month (before your monthly statement cycles) then we will need you to go into the bank and get a 60 day transaction history print out that is stamped, signed and dated on each page of the print by the teller out to authenticate it. The print out MUST be signed in order for underwriting to accept it.
The underwriter will not accept banking printouts from online banking unless they are stamped, signed and dated on each page of the printout by the bank teller.
If you deposit gift funds, a 401K check or any other funds that you are using for your down payment then we will need you to get a copy of the check that you used for the deposit from the teller (or from online banking).
C – Cash
Is it ok to deposit cash of any kind into a bank account? The short answer is no its not. If you deposit any cash into the bank it does not “count” towards your down payment or reserves. It’s not illegal to deposit cash of course but the deposit is not counted towards anything and it only slows your loan processing down when you deposit cash. Please hang onto cash you have on hand until after we close your loan.
D – Deposits
Underwriters require “sourcing” of ALL deposits over $100. What that means is if you see a non-payroll “credit”, “deposit” or transfer into your account you’ll need a copy of whre the funds came from. The bank teller can easily provide you with a copy of ALL deposits that went into your bank account over the last 2 months.
Direct deposit transactions from an employer are acceptable deposits as long as the employers name appears on the deposit showing where the funds came from.
E – Earnest Money Deposit (EMD) Checks
Underwriters require a copy of the front and back of an Earnest Money Deposit check in order to validate the funds to be credited at closing. Please log into online banking or go into your bank to get a copy of the EMD check (front and back) to show the funds cleared your account.
If you do not have a recent bank statement showing the funds cleared your account we will need a 60 day transaction history print out from your bank (stamped, signed and dated by the teller) to show the EMD check cleared your account.
Mobile Deposits are getting more and more popular these days. We ran into an issue where the bank did not print bank codes on the back of a check that was done mobile deposit in underwriting a while ago.
Please do not deposit gift funds checks via mobile phone. Please deposit the check in the bank during bank hours when possible or in the ATM machine after hours. Both methods will result in bank codes being printed on the back of the check deposit.
We will need a copy of the gift funds check deposit to “source” the deposit for the Underwriter. Please log online or go into the bank to get a check image of the deposit. We need the front and back of the check after it clears your account.
My complete contact info is listed below as a reference. Please call, email or text me with any questions on anything.
Nick Van Vorst
Mortgage Loan Originator
Private Mortgage Wholesale