bank account question

[Anonymous]

My fiance and I want to apply for a mortgage soon. Problem is that our bank accounts are sort of in disarray. We each had a seperate bank account, and half of each of our checks went into them. The other half of each check goes into a joint bank account that we pay our rent and other household bills out of. I recently closed my bank account and now 100% of my check goes into the joint. We were saving cash for a while. My fiance had a project car that he has been selling car parts from and such and we opened a savings account and deposited 7000 dollars. Mostly from random selling of car parts and rolling change and withdrawing extra money afterbbills were paid.

My question is his bank account is used to pay for gis car loan, insurance, cell phone and his credit.cards. we only leave him with minimal money in there to spend. So it always looks low. Under 100 dollars I would say. Same thing with our joint bank account. we pay household bills. Once bills are paid and we transfer some to savings we have about 100. We make a combined 52k a year.

My worry is

1) we really can't explain where all of the money in savings came from. Kind of a mix of paychecks, and car parts. How do we explain that?

2) will it look bad that we are always a little low in our banks. We never overdraft. And our savings is 7000.

!
Any help would be appreciated!!

[Mike_B03]

I believe if the money is seasoned for at least 2 months (shows up for at least 2 statements), then you dont have to explain where it came from. Having $100 in one account shouldnt be a problem as long as you have another account with enough money to cover closing costs. If you have your savings in cash, then you need to deposit it and wait 2 months until its seasoned.

[Anonymous]

Thanks! The money has been in the bank for about 2 cycles. Waiting for the second statement to cut. I guess then it will be seasoned enough. 

Stupid Question. As I said my fiance uses the money left in his bank for little purchases like gas, drinks, food. Do they look negatively on lots of small purchases a day? like 2 dollars at the gas station twice a day, and lunch at fast food? Or are they only looking for overdrafts and things of that nature.

[Mike_B03]

I dont see why they would look negatively at those things. It's your money, you can spend it as you want, as long as you have enough for closing, you dont have any negative items like insuffcient funds and you can explain any large deposits.

[E150GT]

They dont care what you spend money on. They are looking to make sure you are getting an income stream you say you are and that your obliations arent too high for the income. I stop by the gas station all the time. My statements are littered with small gas station charges and they never said a word about it. 

[foofighter74]

---

@Anonymous wrote:

Do they look negatively on lots of small purchases a day? like 2 dollars at the gas station twice a day, and lunch at fast food?

---

No.  Because if they did, we would never have gotten approved.  There's a zillion charges per month on our bank statements from my wife's debit card for Starbucks.

[Anonymous]

Thank you!

Would It be a problem that my moms name is attached to our savings. She used to put money in it for our wedding, so we added her name so she could do it without having authorization. Should I see if there is a way to remove her?

[foofighter74]

I think you would just need a letter of explanation from your mother stating that you have full access to the entire balance in the savings account.