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Questioning deposits during loan process
Anyone know how low of a deposit amount the lender will question when going through the loan process? Is it all deposits (not payroll checks)? Or, just large desposits? Guess i'm wondering how down and dirty they'll get. lol
Should I start keeping track of all deposits now just in case?
The deposit on our summer beach house rental is due this week and my sister and I are splitting it. Should I have her write something on the check memo and make a copy of it or something? (her half is $125).
For reference I dont really desposit much besides payroll checks and some random cash that I get to cover online purchases (for example, I bought some things online last week for about $100 and deposited $100 in cash from my christmas gift money to cover it).
Re: Questioning deposits during loan process
We made an offer on a house yesterday, and my loan officer said to keep track of/get receipts for every single deposit into our account from here on out, with the exception of payroll checks.
So, yes, keep a paper trail of every deposit.
Keep a paper trail. Some underwriters are more anal than others.
It's better to have more information than you need than to have to scramble to find a random deposit slip at the 11th hour.
If you need an example of the oddities that underwriters can come up with... There was a Nestie a few years ago who was recently married and she and her H were buying a house. Not only did they have to show their marriage license and prove everything on their bank statements since there had been so much recent activity from the wedding (venue payments, florist, gift check deposits, etc), but they also were required to provide a copy of their wedding invitation. That's right... their INVITATION. It was random and weird, but their loan was held until they produced a spare invite. They finally did make it through the process, but I have to say that was the strangest request I'd ever heard of.
http://pandce.proboards.com/index.cgi#general
That's really strange. I'm curious, did they say why they needed the invitation? Couldn't someone just fabricate that? I don't see what the invitation would do for them that the marriage license hasn't already covered.
Ok, the invitation requirement is odd-after all, you can just go the JOP to get married.
We had a reimbursement from a dr. office (long story short, insurance ended up picking up more of the bill after the prepayment). If I recall, it was around $800. We actually had to get the dr. to write a letter verifying that the money was a refund and not a gift. Um, yep, dr.'s give out monetary gifts all the time?!
The funniest part---we had so much more $ in our account that you could dismiss the 800 completely and it wouldn't have mattered. But, I guess the lenders dug such a hole for themselves when they handed out money like candy that now many are being "too" critical.
My Valentine Bookends (2~13~13, 2~15~09)
I thought it was pretty much any amount. We'd made a bunch of random deposits and I had to produce documentation for each and every one. We'd taken out a bunch of money in cash when we went to Vegas, didn't spend all of it, and I deposited the cash back in our account afterword. Yep ... I had to write down an explanation for that cash. Same with a check I'd deposited for $50 for my birthday ... I just had to produce a copy of that check.
I was surprised how easily the banks were able to give me check copies/copies of deposit slips/documentation on anything that was questioned, though. It wasn't as much of a hassle as I expected to get documentation on things after they'd already been deposited.
Yeah, it was really weird. We were all taken aback by that one. I don't remember the Nestie's name anymore... it was back in probably 2009 or 2010 and it was an infrequent poster.
I do remember her saying that she asked the loan officer why they needed the invitation considering that they had the marriage license and the LO had no idea and thought it was odd as well. They were just fielding the request from the underwriter. The Nestie had some leftover invites so they just handed one over and the underwriter pushed their file right through once they recieved it.
That remains, to this day, the strangest thing I have ever heard of on this board. I've heard some doozies on my regular board... but on this one, it's the wedding invitation. Hands down.
http://pandce.proboards.com/index.cgi#general
I'm a mortgage processor for one of the biggest lenders. Our rule of thumb is to document all non-payroll deposits totaling 50 percent of gross income on a conventional or 25 percent on a government in a 30 day period. The underwriter may question a smaller deposit if it was made prior to your earnest money check clearing if the check wouldn't have cleared without it.
Crazy as it is, asking for a wedding invite to confirm wedding gifts is the norm.
But people can get wedding gifts without having a "formal" ceremony. We had friends get married at a JOP--they eloped
We sent a gift and I know all of our friends did too.
Like I said, I think the lenders dug a huge hole when they were too loose with giving out loans and now the pendulum has swung.
My Valentine Bookends (2~13~13, 2~15~09)
We didn't need to produce a wedding invite, just a copy of the license was enough. BUT they did ask for it.
Yes, keep track of and get copies of EVERY.SINGLE.DEPOSIT. The smallest we had deposited was $300 and they wanted a copy of that also, which I thought was quite small, but they are really covering their butts with as much documentation as possible.