Deposits
- Thread starter alan98
- Start date
I don't deal with this stuff on a regular basis, but when we bought our house a few years ago I went through the whole "deposits in your bank account" thing.
From the amounts you listed, you probably shouldn't have trouble, being the largest one was only $210. I'm guessing an explanation that you sold a couple of things would be enough. I think they are looking for substantial deposits is when you need to provide the source and circumstances of the deposits.
(LONG) Example, when we bought the house we are in now:
We previously put a $2,000 "earnest money" deposit down on a different house before we bought our current place. Turns out we found a few questionable things during the home inspection, and rather than mess around with problems for our first place, we decided to retract our offer since they were big problems. Our realty company refunded the $2,000 we put down as earnest money, and we continued looking at more houses.
When we found the place we ended up buying, went through the whole scenario again, earnest money, home inspection, pre-approved, etc...
Time came to actually get "for real" approved for the mortgage, and we had to supply a ton of papaerwork, including bank account statements for the past year (maybe two?), paystubs, etc... The mortgage company saw the $2,000 deposit (just a refund from our realtor remember), and asked us about it. I explained the situation, so they said they needed a short typed and signed explanation from us for their records, and a copy of the check from our realtor...ok, easy enough, done.
Thought we were ready to go a couple days later and we were told they now wanted a copy of the cancelled contract for the offer we put down on the first house...got them that...thought we were done, again.
Nope, a few days later they tell us they need a written and notarized letter from the realty company to verify our story.
Geeze. Ok, got all this together again, all the while they're telling us we need to hurry and get things in order so we can close by a certain date or they won't issue the mortgage, meanwhile the lender is the one causing the delays for all of this required paperwork.
The letter from the realtor was finally enough to prove to them we weren't selling stolen TVs out of a van by the river or whatever, and we finally owned the house after a lot of unnecessary hassle.
But in the end, having a place to call home is worth it. Good luck with everything.
From the amounts you listed, you probably shouldn't have trouble, being the largest one was only $210. I'm guessing an explanation that you sold a couple of things would be enough. I think they are looking for substantial deposits is when you need to provide the source and circumstances of the deposits.
(LONG) Example, when we bought the house we are in now:
We previously put a $2,000 "earnest money" deposit down on a different house before we bought our current place. Turns out we found a few questionable things during the home inspection, and rather than mess around with problems for our first place, we decided to retract our offer since they were big problems. Our realty company refunded the $2,000 we put down as earnest money, and we continued looking at more houses.
When we found the place we ended up buying, went through the whole scenario again, earnest money, home inspection, pre-approved, etc...
Time came to actually get "for real" approved for the mortgage, and we had to supply a ton of papaerwork, including bank account statements for the past year (maybe two?), paystubs, etc... The mortgage company saw the $2,000 deposit (just a refund from our realtor remember), and asked us about it. I explained the situation, so they said they needed a short typed and signed explanation from us for their records, and a copy of the check from our realtor...ok, easy enough, done.
Thought we were ready to go a couple days later and we were told they now wanted a copy of the cancelled contract for the offer we put down on the first house...got them that...thought we were done, again.
Nope, a few days later they tell us they need a written and notarized letter from the realty company to verify our story.
Geeze. Ok, got all this together again, all the while they're telling us we need to hurry and get things in order so we can close by a certain date or they won't issue the mortgage, meanwhile the lender is the one causing the delays for all of this required paperwork.
The letter from the realtor was finally enough to prove to them we weren't selling stolen TVs out of a van by the river or whatever, and we finally owned the house after a lot of unnecessary hassle.
But in the end, having a place to call home is worth it. Good luck with everything.
We had the same thing. As it was explained to us they are trying to verify the source of large deposits to verify you didn't borrow the money for the down payment and didn't disclose a loan not on the credit report.
They are trying to determine if you really have the income needed to meet their lending requirements, or if you are padding your income or getting gifts from family in order to qualify for more house than your regular income would recommend. That is all. Your deposit amounts are inconsequential don't worry about it.
I just went through the same thing. The lender asked about transactions from $1000 and up. The larger ones I had cancelled checks and whatnot, but some in the $1500 to $3000 range were primarily from sales of personal stuff to members here. I simply wrote a short statement and signed it saying the deposits were from USPS money orders received as payment for personal items. That satisfied their request.
