Is it true...

Curly1311 · September 2011

the mortgage company scrutinizes all of your transactions coming out of your bank account 2 months prior to closing? My husband and I are waiting for SS approval to have a round-a-bout idea when we will close on our home. I'm told that the mortgage company will be a pain about deductions in your checking account. Is this true? Has this happened to you? Any advice?

Tweetysvoice · September 2011

hasn't happened to us and we've already been approved by the underwriter. They did ask for 2 months worth of savings and checking accts, but I believe he was more interested in our average balance and that we had an account. I hadn't heard this, so keeping my fingers crossed that they don't do this. I don't want any delays!

Good luck!!

Aerowife2010 · September 2011

They're going to scrutinize unusual transactions. If they see your normal direct deposit, payment to the utility company, payment to the cell phone company, etc. they're not going to care. But if they're seeing huge deposits from Aunt Sue or large payments to Bob, they're going to want to know what those transactions are.

kfriscia · September 2011

Yes! We had to justify all deposits that weren't obviously paychecks. We had like an $8 rebate from staples deposited and even had to show a copy of that check. It was a giant pain.

EMWindy · September 2011

The scruntized any big withdrawals and deposits - I had to get copies and write explanations about why money was withdrawn from savings, deposited into checking, then withdrawn from checking (to pay for improvement expenses on the house we are trying to sell).

I will say - I am a very detail oriented CPA (and I think I over-document everything) - and I came to the mortgage company with all my documentation, and they wanted more documentation/explanations/etc. I was shocked - I''ve never met anyone that is more of an 'over-documenter' than I was.

It wasn't like that when we bought our first house in 2005!

lil_jen051708 · September 2011

We weren't asked about any deductions to our account. We were qualified just on my income and only used statements from one of our banks. My mortgge guy did not want to use our other bank statements because 1) we didn't need it to qualify and 2) my husbands paychecks are deposited and he said we'd need proof of all of those.

sarahtucker · September 2011

We only had to provide an explanation when the deposit or withdrawal was more than $500. It was pretty easy. Just a brief explanation and a signature from one of us.

breaness · September 2011

They scrutinized every. single. deposit. Even if it was only $50. I own a photography business as an LLC, and I had a ton of deposits from that. I also do a lot of freelance work as a video editor and every deposit from that had to be documented too. My fiance doesn't have direct deposit through his job so every month when he deposited a check of the same amount of money and they still needed an explanation. It's really frustrating.

juangela · September 2011

sarahtucker:
We only had to provide an explanation when the deposit or withdrawal was more than $500. It was pretty easy. Just a brief explanation and a signature from one of us.

Ours was the same. We had gotten our tax return so we had to explain that, but my H and I have pretty normal looking accounts, I'd imagine.

atlcatlover · September 2011

We were told once we started the mortgage process to make sure not to make any large purchases until after we had closed. They didn't question normal things.

Justinlove · September 2011

Short answer--yes. They especially want an explaination on deposits that do not come from your employer.

Hehehe, you'll get a kick out of this one. Several months prior to our loan application, our daughter had to have a medical procedure done. At the time, our insurance quoted how much they would cover and the specialist required payment for our portion up-front. We paid (it was around $1000). Anyhow, when the insurance actually got around to paying the claim, they paid for significantly more than quoted so we were due a refund of about $850. Our specialist mailed us a check, but it did not specify "reimbursement"--just "insurance adjustment." We actually had to get our specialists' office write a letter stating that the $850 was not a "gift" and was legitimally our money.

A gift? When our LO told us the wording that needed to be used, I about fell off my chair. My smarta$$ then asked him to give me the name of his doctors who "gift" him money because I am obviously seeing the wrong ones!

We also had a "hostage" account as I like to call it. It was held hostage by our lender because we couldn't use the money in it. It was an account my husband had since childhood that still had his dad's name listed on it--so to use the money, FIL would have had to "gift" the money--and then pay a tax penalty for doing so. Ah, the joys of joint accounts. So, we couldn't use it for our mortgage, but we also couldn't use it to pay bills, etc. It was our "hostage" money!

curlylocks3 · September 2011

We were warned by our lender that we should have explanations for all transactions and to save receipts for all things at the ATM. In the end we didn't get called to account for anything, but we didn't have anything unique or different on ours, just paychecks and bills being paid automatically.

Is it true...

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