I'm in the middle of prepping all my docs for a mortgage application and got a bit stuck on proving assets. Bank statements seem obvious, but do they usually ask for investment accounts, retirement funds, or anything else? Just wanna avoid surprises, you know...
Yeah, bank statements are usually the go-to, but honestly, lenders can be a bit nosy sometimes. When I applied last year, they asked for my investment account statements too—guess they wanted to make sure I wasn't secretly a crypto millionaire or something (spoiler: I'm definitely not). Retirement accounts can come up as well, especially if you're using them to show reserves or backup funds.
One thing that caught me off guard was when they asked about a random deposit from selling my old guitar on Craigslist... had to dig up proof of that transaction, which was a pain. Anyone else had weird little surprises like that pop up during their application?
"One thing that caught me off guard was when they asked about a random deposit from selling my old guitar on Craigslist... had to dig up proof of that transaction, which was a pain."
Yeah, lenders can get pretty particular about those random deposits. I've seen clients have to explain everything from birthday gift checks from grandma to reimbursements from friends for concert tickets. Usually, they're just trying to make sure you're not borrowing money secretly or laundering funds (sounds dramatic, I know, but that's the logic behind it).
If anyone's prepping for a home loan application soon, here's a quick tip: keep records of any unusual deposits or transfers for at least two months before applying. Screenshots, emails, receipts—whatever you have. It saves you from scrambling later.
Speaking of surprises, has anyone had lenders question transfers between your own accounts? Had a client recently who moved money from savings to checking and had to provide statements for both accounts to prove it was their own money... seemed excessive to me, but that's underwriting for ya.
"Speaking of surprises, has anyone had lenders question transfers between your own accounts?"
Yep, had this exact thing happen when I moved funds from my savings to checking before closing. Had to send in statements for both accounts, even though they were clearly under my name at the same bank. Felt like overkill... but I get it, lenders have their rules. Still, you'd think common sense would kick in at some point.
Yeah, lenders can be pretty particular about tracking money movements. It's mostly due to anti-money laundering rules and making sure the funds aren't borrowed from somewhere else. Usually, bank statements covering the last two months are standard, but investment or retirement accounts might come into play if you're using them for reserves or down payment. Best bet is to have those docs ready just in case—better safe than scrambling at the last minute.