topic Re: Need a Checking Account? in Mortgage Loans

Need a Checking Account?

Anonymous — Tue, 23 Dec 2008 18:21:22 GMT

I heard from a friend of mine that it is required to have a checking account to qualify for a home loan...is this true? Why is that? What else is the normal requirements that will qualify me for a home loan? Any help is greatly appreciated! Thanks in advance!

Re: Need a Checking Account?

Anonymous — Tue, 23 Dec 2008 21:30:46 GMT

I think, at the very bare bones, a checking account is needed to account (no pun intended) for where your most easily accessible liquid assets have come from.

I mean, if I asked you to loan me $200K and I SAID I could pay it back, you'd want to see proof that I have the money, right?

Of course, I could hand you a bunch of my old paystubs and you could look at THOSE, but it wouldn't give you any idea on how well I could manage those funds. Nor would it give you any real feeling of my stability and responsibility. I mean, anyone can get a job and get paystubs, but keeping a checkbook balanced is several cuts above.

Also, a good checking account (meaning, managed wisely) demonstrates that you can manage your money will and will be able to manage a mortgage payment.

Re: Need a Checking Account?

DallasLoanGuy — Tue, 23 Dec 2008 22:48:32 GMT

Where else can you show source of funds to close?

Re: Need a Checking Account?

Anonymous — Wed, 24 Dec 2008 04:27:03 GMT

The reason I asked is because I only have a savings account where I get all my deposits/income and I thought that would of worked, but looks like I will need to open a checking account! Thanks!

Message Edited by Swtrandi on 12-23-2008 08:27 PM

Re: Need a Checking Account?

ShanetheMortgageMan — Wed, 24 Dec 2008 21:08:21 GMT

You don't need any checking account per se.. but writing a check makes it pretty convenient when you are paying for the appraisal, escrow deposit, etc. and to provide your lender with copies of those items (vs. getting a money order or cashier's check).

Re: Need a Checking Account?

Anonymous — Thu, 25 Dec 2008 08:24:46 GMT

Thank you so much!

Re: Need a Checking Account?

Anonymous — Fri, 26 Dec 2008 17:12:47 GMT

Do underwriters actually look at your abnk statements for 'financial respoinsibility?'.

Other than account balance and Non-sufficient fund fees (bounced checks), do they actually analyze spending?

I sure hope not, because the statement I submitted shows a LOT of debit card spending becuase of the holidays and some unexpected expenses.

Can someone clarify what underwriters on AUS approved loans are looking for on bank statements (in reality, not theoretically)?

Re: Need a Checking Account?

ShanetheMortgageMan — Mon, 29 Dec 2008 22:51:28 GMT

@Anonymous wrote:
Do underwriters actually look at your abnk statements for 'financial respoinsibility?'.

Other than account balance and Non-sufficient fund fees (bounced checks), do they actually analyze spending?

I sure hope not, because the statement I submitted shows a LOT of debit card spending becuase of the holidays and some unexpected expenses.

Can someone clarify what underwriters on AUS approved loans are looking for on bank statements (in reality, not theoretically)?

Very little analyzation of spending, other than making sure there isn't anything habit forming... as I once had an underwriter question a lot of withdraws made at an Indian Casino a client of mine made, the underwriters feeling was that they could be spending all of their money gambling and could develop into a problem where they wouldn't make the mortgage payment. Never was denied though.

Re: Need a Checking Account?

Anonymous — Tue, 30 Dec 2008 02:58:44 GMT

So if I only have a savings account and apply for a mortgage loan would I be denied? or is it ok to try and apply without a checking account?? Thanks in advance!!

Re: Need a Checking Account?

ShanetheMortgageMan — Tue, 30 Dec 2008 18:40:04 GMT

@Anonymous wrote:
So if I only have a savings account and apply for a mortgage loan would I be denied? NO or is it ok to try and apply without a checking account?? YES

Re: Need a Checking Account?

Anonymous — Wed, 31 Dec 2008 07:25:41 GMT

Thanks! That helps alot