Did underwriters question deposits?

puppydoggie · October 2011

I explained a few of the deposits that were made and I just wondered if any of you had underwriters want more info on them? Various deposits larger than 1k?

puppydoggie · October 2011

I am asking cause that's the last step in our process and I am ready to go! I don't want them to send papers back asking for more info. That would waste so much time.

car_ramrod · October 2011

Absolutely. We were told up front that if we had any deposits (not direct deposits for our pay checks ) of over $1k to go ahead and automatically send the explanation to our loan office so it didn't delay anything. We had this happen twice so I sent a copy of the check that was deposited along with the explanation of what it was for and we ran into no problems.

Justinlove · October 2011

Yep. We had a refund of about $900 from a surgical procedure (insurance ended up picking up more than they originally quoted). Our letter of explanation was not sufficient. I actually had to get the dr. office to write a letter stating that it was a refund and not a "gift." I kid you not. Even the dr. (who is one we see regularly) laughed about the "gift" aspect.

puppydoggie · October 2011

Justinlove:
Yep. We had a refund of about $900 from a surgical procedure (insurance ended up picking up more than they originally quoted). Our letter of explanation was not sufficient. I actually had to get the dr. office to write a letter stating that it was a refund and not a "gift." I kid you not. Even the dr. (who is one we see regularly) laughed about the "gift" aspect.

was this part of your downpayment or was this just money in your account, nothing to do with your downpayment?

Justinlove · October 2011

In our account.

puppydoggie · October 2011

I guess I just don't understand why they are like this. I thought they would be more concerned with what people's bills were, and monthly income. It's just strange to me.

Justinlove · October 2011

Because they want to know that you and your regular income can afford the payments. They don't want you to "beef up" your accounts with "gifts" so that it looks like you are in a better financial position than you really are.

Banks used to hand out money like candy. Then they got burned. Now, they are more cautious.

As long as you don't have a lot of larger deposits (that are not from your employers), you will be fine. It's the unexplained ones they don't like.

puppydoggie · October 2011

I started googling and now it makes sense. If you are getting money that you have to repay, it lessens the amount of money you have to pay them, in their eyes. Makes sense now.

Melby403 · October 2011

I had to explain a deposit of $200. I had sent them all of my bank information for the past 5 months, but they failed to notice it was a transfer from one account to another.

tickledpink1843 · October 2011

I am a wedding photographer so I own my own business. We had a lot of deposits (mostly via check, a couple via PayPal) in our account from my clients giving me their retainer for their wedding day photography. The underwriter didn't ask about any of them. I did provide a profit and loss sheet for my business, so maybe this was sufficient for them, or maybe our mortgage company isn't as picky as some. Our loan actually just got out of underwriting yesterday.

mgfit1 · October 2011

We were not asked but we were asked to supply bank statements that prove where any money came from or went in/out of our account. No one asked for any written explanations. We close on Friday.

trawas01 · October 2011

I pay all the household bills from my account so my FI writes me a check for $400 every two weeks. We had to explain that....and it took more then one letter of explanation before they were happy.

Labbie · October 2011

Yes and it was a huge PITA, especially because said "deposits" were simply transfers from checking (where paychecks go) into savings and/or vice versa. They had all the statements right in front of them to see the ins/outs and we still had to answer. Ugh.

emisi · October 2011

I had to write letters of explanation for Every. Single. Deposit. I had one for $14 that I had to explain. It was incredibly annoying, but I also went through a program called NACA, so they were a little more strict about that than normal banks.

Flirt01 · October 2011

Oh my gosh, I had to explain every freaking deposit that wasn't a direct deposit. I had a $5 deposit that I had to explain! $5! For real?

chicagobride_07 · October 2011

It seems a little extreme. What if you otherwise completely qualify for the mortgage (20% down, reserves, income more than covers it; good history of payment on a mortgage on a previous property) and you can't get all the explanation needed for a $25-50 deposit? Like its a reimbursement from your dental insurance and there is no one to write a personalized "non gift" letter (I can only imagine the red tape of dealing with an insurance company to do this), or its a birthday gift from grandma who can't go through the trouble at the age of 92. Are they really going to deny giving you a mortgage because of this?

Justinlove · October 2011

chicagobride_07:
It seems a little extreme. What if you otherwise completely qualify for the mortgage (20% down, reserves, income more than covers it; good history of payment on a mortgage on a previous property) and you can't get all the explanation needed for a $25-50 deposit? Like its a reimbursement from your dental insurance and there is no one to write a personalized "non gift" letter (I can only imagine the red tape of dealing with an insurance company to do this), or its a birthday gift from grandma who can't go through the trouble at the age of 92. Are they really going to deny giving you a mortgage because of this?

Ours didn't question deposits that small. I would imagine that the "higher risk" you are within particular loans, the pickier they are. In our case, we had enough in our account for the 20% down, 6 months reserves for 2 homes (we also own a rental), etc. We were told that there was a standard policy to ask for an accounting of any "unexplained" deposit of over $500 within the last 2 months. For us, it was fun to ask our dr. for a "non gift" letter--but again, he is close to our family and we all got a great laugh about it. We could have also shown a "proof of reason" statement (ie an insurance reimbursement statement).

Did underwriters question deposits?

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