Approval Process

Guest 0.10 Dollars($)

I have a question on how they approve the mortgage. I was just approved for a loan and the lender said they wanted to verify my assets. I am not sure how they verify. Do I just give them a copy of my checking account or do they call up my bank and actually talk to them. The reason I ask is that I actually have two accounts with the bank. The one account was horrible and I had a ton of bounced checks with. I gave them the statement of the one that has the money to close. In addition my wife is not on the loan, however obviously she will help with paying. She has a savings account that I was never on. So I do technically have the reserves needed with her account. However, with mine it is very close.
My main concern is that they call the bank and the bank tells them I have one good account and one that was horrible.
If they just need the statements from the bank than I will be ok just submitting the one account.

adonis · Posted: Sat Feb 02, 2008 2:33 am Post subject:

Welcome Michaelin,

If it is a formal verification, the lender may contact your bank to verify the deposits and assets. Otherwise, he can ask you for the copies of original bank statements and assets.

ckalvesmaki · Posted: Sat Feb 02, 2008 8:20 am Post subject:

If the savings account is in your wifes name only the lender will not be able to use that......you would need to be added to the account........However she can "gift" money to you and avoid the bank statement issue.....

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.56 Dollars($)

Hi MichaelinOK,

The mortgage lender will only verify the account that you give them that is in your name. They will not verify other accounts with the bank. Your bank would not be able to verify any other accounts without your permission. So you don't have to worry about the bank disclosing other accounts.

As far as the bank statement in your wife's name, that will not be able to be used to qualify you for assets on your application. However, if you come up short on assets that are needed on your application with just your account, you could have your wife add you to her bank account so that you can use that if needed. Hope I could help.

Guest 0.10 Dollars($)

They did ask for my original bank statements so I brough them in for the accounts I wanted to show. Do they typically then call the bank as well?
I just didnt want them to call the bank and have the bank tell them about other accounts I have with them. What I provided was more than enough to cover for the down payment and debt to income and reserves etc.

Then again, I dont want the lender to think I was not telling the truth by withholding all my banking info.

Jessica · Posted: Thu Feb 07, 2008 4:52 am Post subject: RE: bank statement verification

Hi Michaelinok,

Welcome back.

It depends on the lender as to whether he'll call up the bank even after getting the documents from you. I personally believe it's better that you tell him everything in details and then find out what he has to offer. And, if possible, you can even request your wife sign as a cosigner and use her savings account money to be showed as the reserves or assets.

However, if your wife is the cosigner, then she'll be responsible for the loan payment in case you default and cannot get current on the loan.

Regards,

Jessica

gmakerley · Posted: Thu Feb 07, 2008 10:43 am Post subject:

generally, once we have your bank statements, we will not re-verify with the bank.
it is not necessary to disclose all your assets to qualify for a loan. if you have disclosed and verified sufficient funds, you ought to be all set.

your wife's involvement is unnecessary, it seems, from your posts.

jeffselan · Posted: Thu Feb 07, 2008 7:17 pm Post subject: If

If they make any calls, they will verify what you provide

Do your lender a favor, don't disclose accounts not needed for closing unless they are used for reserves. The extra documentation is a headache.

Just my .02.

Guest 0.10 Dollars($)

I want to thank everyone for their advice. Boy, this website is AWESOME.
It gives great sound advice for free. I will definitely remember that next time I need a loan I am contacting someone from this board and I am also going to recommend this site to all my friends and family.

I have found out that when I gave the underwriter too much paperwork they ask some really weird questions. Some where not even common sense. I was a little scared knowing that such a person had my file.
Or the person was just doing that on purpose to make me explain.

I have no idea why I had to explain every single deposit .
I had loaned my brother 10k about 6 months ago for some home repairs. HE paid it back. I showed them the check I wrote it even said in the memo. Loan to Pat for Roof & HVAC.
I showed them that check and the check he gave back to me. What a pain....

Samantha · Posted: Fri Feb 08, 2008 12:36 am Post subject: RE:

Michaelinok,

Thanks for appreciating this community and it's efforts.

May be as Jeff said, it would have been better had you submitted only the required papers. Next time, just ask the lender what all are required and submit the needful.

Jeff, can you tell me what accounts are needed for closing? Would like to know for a friend who's looking for a mortgage.

jeffselan · Posted: Fri Feb 08, 2008 8:27 am Post subject: Samantha and Michael

Michael- Thank you for visiting the site, we try to provide useful information to help you with the process.

Samantha- it differs with every transaction and the scenario involved. But I think you already know that Wink

Feel free to contact me anytime.

gmakerley · Posted: Fri Feb 08, 2008 8:33 am Post subject:

michael, any large deposits that appear on your bank statements need to be explained. this is simply due diligence on the part of the underwriter. yes, it may seem to be a nuisance, but this is standard practice throughout the industry. what you described, however, is precisely what the underwriter would have been looking for - the check you wrote for the loan along with the payback.

essentially, they wish to be able to document that you haven't acquired funds from an unauthorized source; that you haven't taken a new loan, for example.

that guideline has been in effect for a long time - well before the recent crackdown on documentation caused by this "crisis" we are supposedly in.

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