Bank statements

[Anonymous]

I understand that lenders want to see two months of bank statements to verify there are enough funds to cover closing costs, downpayment, and three months mortgage. When looking at these statements will they also be comparing how much money is coming in compared to going out? My husband's career involves traveling, for which he is always reimbursed. This makes it appear that we spend more than we make almost 6 months a year. Although we have the option to have traveling costs paid for directly from the university, we choose to be reimbursed because we have a rewards program on our CC and benefit from charging the card.

Let's suppose money in vs. money out is an issue. If we keep the stubs from which we are reimbursed, would that be enough to "comfort" the lender? Would we need something in writing as well? Or would it be best to begin asking the university to pay for all travel directly a few months prior to applying for a mortgage?

When we apply for a mortgage our income will have doubled from what we currently make, if that has any effect.

[Anonymous]

I thought the same thing when we were going through the mortgage process, but in general the Underwriter wants to see that the money coming in can be verified. They usually aren't worried about what is going out. They ask for the two months bank statements so they can see that you have the downpayment,and closing costs (if the seller isn't covering them) money readily available.

I think you should just keep the receipts *in case* they ask, but I honestly don't think they will. I use my debit card for EVERYTHING, and my spending habits were never an issue.

Good Luck!

[webhopper]

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@Anonymous wrote:

I thought the same thing when we were going through the mortgage process, but in general the Underwriter wants to see that the money coming in can be verified. They usually aren't worried about what is going out. They ask for the two months bank statements so they can see that you have the downpayment,and closing costs (if the seller isn't covering them) money readily available.

I think you should just keep the receipts *in case* they ask, but I honestly don't think they will. I use my debit card for EVERYTHING, and my spending habits were never an issue.

Good Luck!

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+1

I use my American Express for work related expenses which are reimbursed.  I provided my LO with the Remittance Advice from where I was reimbursed, A letter of explanation for checking account deposits, as well as a copy of the expense reimbursement form that I submit to my employer every month.   There should be no issue with these reimbursement deposits.  For what its worth, my X dollars in and X dollars out fluctuate but I've never been asked about how much I spend or why my American Express payments are so much.

[tooleman694]

I spend like crazy with my debit card all the time. I freaked when I had to give 2 months worth of 711 visits for smokes and red bulls and whatever else I waste money on.

Like the others stated I think they just wanted to see that I had the cash to close. And that I dont have any weird deposits.

[Anonymous]

All they are generally looking for is the amount going in.  They want to look for gifted money in the case of a conventional loan, and often times just validation of your payroll checks and to verify nothing fishy is going on

[Elcid89]

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@Anonymous wrote:

All they are generally looking for is the amount going in.  They want to look for gifted money in the case of a conventional loan, and often times just validation of your payroll checks and to verify nothing fishy is going on

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+1

They are looking for:

Income being as advertised

Funding for downpayment & closing not showing up automagically overnight in the absence of a gift letter, etc.