topic when do lenders ask for bank statements? in Mortgage Loans

when do lenders ask for bank statements?

Anonymous — Mon, 10 Aug 2015 17:25:32 GMT

preapproval, midway, before closing?

i am asking cuz i made a bunch of cash deposit transactions and i want to let it season for 2 months (aug/sep).

my plan is to get preapproval sometimes soon and start shopping for a house the next few months. if i dont have to submit the statment until early oct then that be perfect.

Re: when do lenders ask for bank statements?

Anonymous — Mon, 10 Aug 2015 17:34:33 GMT

@Anonymous wrote:
preapproval, midway, before closing?

i am asking cuz i made a bunch of cash deposit transactions and i want to let it season for 2 months (aug/sep).

my plan is to get preapproval sometimes soon and start shopping for a house the next few months. if i dont have to submit the statment until early oct then that be perfect.

It's requested after preapproval and may be requested again before file goes in for final underwriting.

Re: when do lenders ask for bank statements?

Anonymous — Mon, 10 Aug 2015 17:41:10 GMT

@Anonymous wrote:
@Anonymous wrote:
preapproval, midway, before closing?

i am asking cuz i made a bunch of cash deposit transactions and i want to let it season for 2 months (aug/sep).

my plan is to get preapproval sometimes soon and start shopping for a house the next few months. if i dont have to submit the statment until early oct then that be perfect.
It's requested after preapproval and may be requested again before file goes in for final underwriting.

Actually, it is usually before pre-approval. Also, underwriters will need to see most current statements if they do not have the newest month.

Re: when do lenders ask for bank statements?

Anonymous — Mon, 10 Aug 2015 18:28:32 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
preapproval, midway, before closing?

i am asking cuz i made a bunch of cash deposit transactions and i want to let it season for 2 months (aug/sep).

my plan is to get preapproval sometimes soon and start shopping for a house the next few months. if i dont have to submit the statment until early oct then that be perfect.
It's requested after preapproval and may be requested again before file goes in for final underwriting.
Actually, it is usually before pre-approval. Also, underwriters will need to see most current statements if they do not have the newest month.

so i should just let it season for 2 months then get pre-approval? is there a way to find out how much i can borrow without submitting bank statements?

Re: when do lenders ask for bank statements?

Anonymous — Mon, 10 Aug 2015 18:33:54 GMT

quick background for what i plan on doing

2013 30k W2, 2014 42k W2

i plan on purchasing TH in the 400k range, 425k max. i can come up with 20-25% downpayment but i am not sure if my w2 will get me a 300k loan. i have no debt right now, no car/student loan. fico scores high 600.

or should i wait til 2015 is over n use 2014/2015 W2 instead. my 2015 W2 will also be 42k.

Re: when do lenders ask for bank statements?

Anonymous — Mon, 10 Aug 2015 18:37:54 GMT

@Anonymous wrote:
quick background for what i plan on doing

2013 30k W2, 2014 42k W2
i plan on purchasing TH in the 400k range, 425k max. i can come up with 20-25% downpayment but i am not sure if my w2 will get me a 300k loan. i have no debt right now, no car/student loan. fico scores high 600.

or should i wait til 2015 is over n use 2014/2015 W2 instead. my 2015 W2 will also be 42k.

For a 42k salary you may get approved for a little under $185K depending what the interest rates are at the time of applying.

Re: when do lenders ask for bank statements?

ezdriver — Mon, 10 Aug 2015 19:21:20 GMT

@Anonymous wrote:
preapproval, midway, before closing?

i am asking cuz i made a bunch of cash deposit transactions and i want to let it season for 2 months (aug/sep).

my plan is to get preapproval sometimes soon and start shopping for a house the next few months. if i dont have to submit the statment until early oct then that be perfect.

Shortly after preapproval - you actually sign a mortgage app to be preapproved. The majority of preapprovals issued at done without the supporting financial documents being aavailable to the LO so the preapprovals are based on what's contained in credit reports and what the borrower verbally provided to the LO. In most cases, the supporting documents, along with a formal mortgage application, is not done until a purchase agreement is available.

From that point forward, know that financial documents cannot be more than 60 days old so you will be asked to provide updated documents if any becomes older than 60 days. This happens a lot with new construction as it generally takes 5 months or more to complete a home.

Re: when do lenders ask for bank statements?

Its_Me — Mon, 10 Aug 2015 22:16:20 GMT

I applied for a pre-approval with a credit union in June and was asked to submit 2 most current months of bank statements and most recent month's paystub. The underwriter then requested a letter of explanation for discharged chapter 13. My credit report was also pulled. I also had to explain all inquiries within the last 6 months. Once my loan was pre-approved, I received a letter.

Re: when do lenders ask for bank statements?

ezdriver — Mon, 10 Aug 2015 22:56:55 GMT

@Its_Me wrote:
I applied for a pre-approval with a credit union in June and was asked to submit 2 most current months of bank statements and most recent month's paystub. The underwriter then requested a letter of explanation for discharged chapter 13. My credit report was also pulled. I also had to explain all inquiries within the last 6 months. Once my loan was pre-approved, I received a letter.

That's pretty good of the CU ... but that not common ... especially in the new construction industry. Just curious, how long was it from applying to receive the preapproval letter? In my industry, 15 minuets is common.

I recent lost an opportunity to buy a car because a CU and WF took too long to tell me if I'm approved or not. Then NFCU did it in an hour...but I had to buy a different car that cost me $4k more.

Re: when do lenders ask for bank statements?

Its_Me — Mon, 10 Aug 2015 23:15:36 GMT

@ezdriver wrote:
Just curious, how long was it from applying to receive the preapproval letter? In my industry, 15 minuets is common.

I recent lost an opportunity to buy a car because a CU and WF took too long to tell me if I'm approved or not. Then NFCU did it in an hour...but I had to buy a different car that cost me $4k more.

It did take a couple weeks for the preapproval. I went back and looked at my notes and I forgot that I had to get my landlord to sign a rental verification form and I had to have my husband sign a gift funds form. I did have one place give me an approval in a day but the loan officer didn't ask for as much documentation. I made sure I applied well over a month before I was to begin looking. At the end of May, I also applied at another credit union that required most of the same documentation and I got my preapproval in 3 days.

I'm not sure if providing all that documentation was necessary but I felt pretty good about the preapproval knowing they had it in their hands. The nice part was that once my Realtor submitted a contract, the credit union had a lot of my documents. I already have updated paystubs and bank statements ready to go for when the underwriter asks.

Re: when do lenders ask for bank statements?

DallasLoanGuy — Tue, 11 Aug 2015 01:32:50 GMT

we look for large non payroll deposits to determine if they are 'allowable' and we look for re-occurring payments that might indicate an undisclosed debt..... like a tote-da-note car loan or something.... that would affect ability to repay