Posted on: 18th Oct, 2012 01:05 am
I understand that lenders want to see two months of bank statements to verify if I have funds to cover closing costs, down payment, and three months mortgage. When looking at these statements will they also be comparing how much money is coming in compared to going out? My husband's career involves traveling, for which he is always reimbursed. This makes it appear that we spend more than we make almost 6 months a year. If we keep the stubs from which we are reimbursed, would that be enough to "comfort" the lender? Would we need something in writing as well? Or would it be best to begin asking the university to pay for all travel directly a few months prior to applying for a mortgage? When we apply for a mortgage our income will have doubled from what we currently make, if that has any effect.
Hi Terry!
Welcome to forums!
It is true that the lender will check your bank statements in order to verify if you have funds to cover closing costs, down payment, and three months mortgage. But the lender will mainly check the source from where the money is coming. He may not be interested in checking where the money is going.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is true that the lender will check your bank statements in order to verify if you have funds to cover closing costs, down payment, and three months mortgage. But the lender will mainly check the source from where the money is coming. He may not be interested in checking where the money is going.
Feel free to ask if you've further queries.
Sussane
Hi Terry,
The lender will check your bank statements in order to find out the amount you have in savings. Apart from that he may ask for a statement in writing as to where the money is coming from.
Thanks
The lender will check your bank statements in order to find out the amount you have in savings. Apart from that he may ask for a statement in writing as to where the money is coming from.
Thanks
Lenders typically require that you document "large deposits" that differ from what pay check deposits would be.
If your statements show "large deposits" from business expense reimbursements, you must simply be able to document that that is what the deposits came from. Copy of business expense voucher to match the deposits along with letter from company stating that, yes, they authorized and paid those business expenses.
Lenders look at expenses on your credit report, not on your bank statements. Any expense from business expenses on the credit report will likely be counted in the debt ratio. As long as business expenses on your credit report do not make your debt ratio too high for mortgage loan approval, you should be fine.
If your statements show "large deposits" from business expense reimbursements, you must simply be able to document that that is what the deposits came from. Copy of business expense voucher to match the deposits along with letter from company stating that, yes, they authorized and paid those business expenses.
Lenders look at expenses on your credit report, not on your bank statements. Any expense from business expenses on the credit report will likely be counted in the debt ratio. As long as business expenses on your credit report do not make your debt ratio too high for mortgage loan approval, you should be fine.
