Don’t Let Bank Statement Surprises

 

Don’t Let Bank Statement Surprises Cause your Home Loan Closing to be Delayed

 

Understanding what can delay a transaction empowers agents and borrowers to better work with their lender and meet everyone’s expectations.

Mark has found that one of the most common issues clients face when trying to close a loan on time is trouble with their bank statements.  When you are submitting a loan to the bank, the lender has to validate the source of monies that are coming in to your bank account.  If these sources cannot be validated, it slows down the loan process and can cause a lot of confusion for the home buyers and the Mortgage Advisors.

Monies such as normal income from your employer, child support, social security and pensions are great sources of income, as they provide documentation and are deposited into your account on a consistent basis.  Some people can run into difficulties when they are given money from a family member or friend (gift money).  Gift money is completely acceptable as a source of income, but it must be documented in order for the transaction to continue.

You want to avoid having anything appear on a bank statement during your transaction that is unexpected.  Let’s say you win money in Vegas or sell an old car; that’s great!  Just don’t randomly deposit that money into your account.  It will set off a red flag to the lender, who will need you and your Mortgage Advisor to carefully document the new money and validate it’s source.  This can take up a lot of time and slow down your home loan process.

It is also important to always ensure that the money you will be using for closing costs will come from one of the accounts that was listed on your original loan application.  If the buyer uses an account that was not listed, the money cannot be withdrawn and a delay in the closing process will occur.  Including the correct accounts and making sure to use those accounts will save everyone tons of time and stress during the loan process.

At Samuel Scott Financial Group, we tailor the residential loan process to meet the needs of our clients.  Our Mortgage Advisors are experts guide real estate agents and borrowers through their transaction, providing thoughtful advice and friendly support.