topic Re: Sorta surprising underwriting request in Mortgage Loans

Sorta surprising underwriting request

Revelate — Wed, 09 Nov 2022 11:00:36 GMT

Curious on others' experiences, my layman's understanding is that checking bank statements goes back 6 months for money seasoning if there's any question on it.

Got asked for source of deposits from two back in August of 2021 even. This may be a reason not to go get a mortgage with the FI you run your life through and has access to lots of data on you, but weird.

Did anything change in the conventional UW guidelines? I understand the theory that if you have the data, use it... but this seems odd to me unless they are expecting to keep the loan?

Re: Sorta surprising underwriting request

MortgageMama — Thu, 10 Nov 2022 14:53:07 GMT

Generally bank statement documentation only goes back 2 months. However, if the cutoff date of your statements captured a large deposit from a prior month, they would want to go back farther to source the deposit.

Re: Sorta surprising underwriting request

pizzadude — Thu, 10 Nov 2022 15:00:43 GMT

Maybe it has to do with timing / delays around your new house / build and they're just checking the boxes on your down payment / deposit from last year ?

Re: Sorta surprising underwriting request

iced — Thu, 10 Nov 2022 15:03:10 GMT

@Revelate wrote:
Curious on others' experiences, my layman's understanding is that checking bank statements goes back 6 months for money seasoning if there's any question on it.

Got asked for source of deposits from two back in August of 2021 even. This may be a reason not to go get a mortgage with the FI you run your life through and has access to lots of data on you, but weird.

Did anything change in the conventional UW guidelines? I understand the theory that if you have the data, use it... but this seems odd to me unless they are expecting to keep the loan?

When I started moving money around for the down payment, they wanted to see the stubs showing that movement so I didn't try to sneak any unseasoned money into the flow, but as my finances were already seasoned and easily tracked there weren't any requests to go back more than 2-3 months.

So, my first and best guess is they saw something in your current finances that led them back to 8/2021.

Re: Sorta surprising underwriting request

ShanetheMortgageMan — Thu, 10 Nov 2022 19:32:14 GMT

Going back to August 2021 seems extreme in November 2022, but if you are buying a home and that is when your deposit funds came out then (like if you are buying new construction) they'll want to see the bank statement to source it. We'd only ask for the month the deposit was paid + all bank statements from when you applied through closing. So if you paid the deposit in August 2021 but then applied in March 2022 we'd just need August 2021 + March 2022 through November 2022, not the months from Septmber 2021 through February 2022. Any unusual large deposits on any of the statements would be asked to be sourced.

Re: Sorta surprising underwriting request

Revelate — Thu, 10 Nov 2022 23:00:55 GMT

@pizzadude wrote:
Maybe it has to do with timing / delays around your new house / build and they're just checking the boxes on your down payment / deposit from last year ?

Ah, thanks bud and appreciate you Shane for the confirmation.

That's exactly it actually, just because Chase has direct access to my checking account information they simply sourced the statements without asking for them.

I put the EMD down in August for an expected March build, but since the construction got massively delayed (December 15th, maybe) that's why the statements were pulled from back then. Makes complete sense and thanks again!