What do lenders look for on 2 bank statements?

[Anonymous]

When lenders ask for 2 bank statements, what in particular are they looking for? What can I do in the next months to appeal to lenders?

For instance, recently I have been aggressively paying off debt to reduce utilization, paid off some medical debts before they went to collections, and paid off a couple collections I found on my report. Obviously it doesn't reflect normal spending!

Also, I'm staying with family while I save up money for down-payment, so I don't have a consistent "rent" payment. Should I start paying "rent" to my family member to show a history of regular housing payments on my bank statements?

Any other tips welcome.

I'm not ready to apply yet, but I'm making big strides in my credit profile, so I want to set myself up in other areas as well.

Thanks in advance!

[_NERD]

Don't know. Our bank statements look like we're loving paycheck to paycheck because we put everything towards paying off debt. We still got pre approved for 265,375 with almost all our revolving accounts reporting as being maxed out or nearly maxed out.

But the overall profile matters more than what I've described. Others will weigh in on your question, soon

[Anonymous]

They look for deposits and withdrawels. They trying to see where your money coming from and going to. Making sure youre not trying to commit mortgage fraud. Checking for reserves also

[Anonymous]

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@Anonymous wrote:

They look for deposits and withdrawels. They trying to see where your money coming from and going to. Making sure youre not trying to commit mortgage fraud. Checking for reserves also

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This! ^^  And also to make sure that any checks you write and deposit in regard to the home purchase are cleared.

[Anonymous]

They just want to make sure you aren't having random cash deposited into your account. I just closed in late March, and I was living with family at the time. I just had to write a letter explaining why I didn't have any rent to pay. Also, if possible sit some money in savings and don't touch it. They like to see extra cash age out since it proves stability. Good luck!

[Anonymous]

Mainly unsourced deposits. Also, transfers out of the account may appear to be debt that is not appearing on the credit report.