topic Re: Bank Deposit issue in Mortgage Loans

Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 00:43:36 GMT

The issue with the loan process and bank deposit:

Upon reviewing the bank transactions, loan officer came back asking about a deposit in my account.

I will try to make this short, so here it goes:

I had withdrawn 5k cash from my bank, after about a week or so I deposited the 5k PLUS 1k income check back to my bank account.

I have a copy of the deposit slip which shows 5k cash and 1k check which totals 6k and is reflected in the statement as a counter credit of 6k.

The loan officer is asking about this deposit of 6k and where it came from.

What should I do? Will writing an explanation letter explaining this help me with my loan process?

Please suggest.

Thanks

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 01:49:56 GMT

You need the withdrawal information as well.

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 02:28:25 GMT

I supplied the withdrawal details along with it. However, they are stating that these are two deposits which are unequal.

So the question is: Had I deposited them as two separate 1 for 1k and the other for 5k, would this prevent from loan officer to make inquiries about this deposit?

The truth is that it is my money and i basically deposited it back along with my check together. Why is this being such as a big deal, are loan officers that stupid they can't understand what the situation is?

Re: Bank Deposit issue

VALoanMaster — Sat, 12 Aug 2017 03:26:18 GMT

No the problem is people have tried before to "beat" the system by structuring deposits. Every deposit that doesn't match your typical deposits for payroll has to be sourced for several reasons. 1 is money laundering. 2 is undisclosed loans. 3 if you have to bring money to the table for a down payment or closing the money has to be sourced & seasoned to make sure the money isn't from a loan or cash advance on a credit card or an attempt to launder money. So no it's not because the loan officer is too stupid to understand the situation.

Why did you take 5k out of your bank & turn around deposit it back into your account with an extra 1k?

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 11:22:31 GMT

Understood. Sorry for being blunt but 5k is the my own money which I deposited back with 1k income check totaling 6k.

Reason why i withdrew 6k is because I was planning to buy cash car, but decided later NOT to purchas it.

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 11:51:42 GMT

You can put that in your letter of explanation and they may just exclude the 6000.00 from being used for purchasing the home. You loan officer should have said that depositing cash is a big deal during a home purchase and for the 2 or 3 statement periods they review. It may be your money but like the previous person said there are various nefarious reasons for cash deposits and so they must be sourced properly.
I can understand not liking it, we had a issue and were not keen either but it was what it was and we understand that it is the rules.

If you had deposited it separately then it might have been less issue for the larger deposit as it would have matched your withdrawal but you would still need documentation for that 1000.00.

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 12:52:51 GMT

At the time I wasn't even thinking about buying a house. What options do I have guys please share ideas please

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 12:59:33 GMT

Do you need the money for down payment or closing costs? Have you already put a bid in on a home or still in PreAPPROVAL stage?

Re: Bank Deposit issue

Anonymous — Sat, 12 Aug 2017 13:13:24 GMT

Yes, I do need both which I have in my banking institute. Buyer has accepted the offer and we are in the underwriting phase.

Re: Bank Deposit issue

VALoanMaster — Sat, 12 Aug 2017 14:51:25 GMT

You'll need a letter of explanation, the statement showing the 5k coming out of your account & a copy of your pay check stub tied to the 6k deposit.

Re: Bank Deposit issue

Anonymous — Wed, 16 Aug 2017 01:38:57 GMT

I have a copy of the statement which shows the withdrawal and the amount deposited back to the account. Even after providing proof and letter of explanation, can they deny the loan?

Everything in my documents are perfect except for this one. My own cash withdrawl which got deposited back to the my own account. I'm so nervous.

Re: Bank Deposit issue

Anonymous — Wed, 16 Aug 2017 01:50:36 GMT

Any loan officers or underwriter in this forum that can help answer this question. What is the probability of officer not approving?

Re: Bank Deposit issue

Anonymous — Fri, 18 Aug 2017 10:45:31 GMT

If you deposited a check for the $1k that will be easy. All you'll have to do is get a copy of the cashed check from your bank. You can probably get it yourself online. Most banks have this feature.

As for the $5k cash...that might be an issue. It can look like to the underwriter like you payed off a debt that was owed then borrowed $5k to make it look like you deposited it back in.

I doubt they'll deny the loan unless that $5k is crucial to be in the account for your approval. If that's the case you might have a problem. Just my guess.