What Looks Best in a Manual Review?

[veracious]

If a manual review of your finances is done by an underwriter, does it look better to show many debit transactions

from your checking account or just a few.  The reason I ask is because your bank statements will show many more transactions

if you use a debit card.     . Is that good or bad?

What if I just withdrew enough cash each month to pay for groceries, gas, misc., etc.

What if I made all purchases with a credit card and withdrew the credit card payments from checking?

How do underwriters look at your spending habits?

Thanks for any responses

[cdtotten]

It is my understanding the when the underwriters review your bank statements they are looking for a couple things:

1. Deposits - are they made regularly, from the same source if DD, and consistent? Are there any deposits out of the normal for larger amounts (that may potentially be gifts that need to be documented)?

2. Risky transactions - is the person constantly spending all sorts of money on gambling, etc?

3. Cash on hand - what kind of balances your accounts are showing consistently.

I don't think the quantity of transactions matters at all. It is more of a review of deposits then anything.

[veracious]

Thanks, cdtotten.

So there's no need for concern as long as your cash withdrawals from checking don't appear to be used

for gambling, they won't question  frequent withdrawals of cash?

[MBOhio2]

Everyone's money managament is different. For example, I use my debit card for EVERYTHING so I have hundreds of transactions on my ststaements and am embarassed that my LO will see how often we eat at Chipotle

Frequent cash withdrawals without the hundreds of debit card transactions will be pretty obvious - you withdrawal and then use cash.

As long as you don't have shady transactions (meaning financially shady), mysetrious cash depositions, NSFs, etc, then you'll be fine!

[veracious]

Thanks, MBOhio2.

I wasn't quite sure just how someone else would be able to decipher your money management skills by looking

at the transaction history displayed by your checking acct..  It seems to me  an underwriter would be limited to a judgement call.

That in my opinion would not be fair.......... so I just want to give them what they're looking for, since I don't know them

and they don't know me.    It's reassuring to know that  they're not looking for anything specific,  but just going- through the-

motions.... because it's required.

[DallasLoanGuy]

i dont care what you do with your disposable income. gambling or not.

never has been an issue on a loan of mine