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They only request you to explain large deposits/withdrawals in the last 2 months.
So if you're not in a hurry and want to skip extra paperwork, just wait 2 statements before getting pre-approved.
Generally they only ask for 2 months bank statements plus they will request the statement that contains the earnest money deposit you plan to gave to the builder. The underwriter is looking for seasoned funds.
The rationale for asking for the statement showing the deposit is to see if you had the funds in your account to give the deposit. The underwriter wants to see a canceled check usually too.
As to the building "giving" back your deposit, it is a paper transaction done on the HUD only. The HUD will show your deposit as a credit that is applied to your down payment.
I was told 3 months of statements looking at larger deposits. As far as the funds going to the builder, you may have to write a LOE about where you got the funds, but mine isn't requiring it.
@StartingOver10: regarding the deposit refund, I'm in a similar situation, I had to put a $5,000 deposit on the contract since I wanted upgrades and special options. Since I'm doing USDA with no downpayment requirement, that $5,000 will be refunded to me with a check at closing. I will be using that to purchase my appliances and installing a fence.
@thankfulheart wrote:I was told 3 months of statements looking at larger deposits.
@StartingOver10: regarding the deposit refund, I'm in a similar situation, I had to put a $5,000 deposit on the contract since I wanted upgrades and special options. Since I'm doing USDA with no downpayment requirement, that $5,000 will be refunded to me with a check at closing. I will be using that to purchase my appliances and installing a fence.
Yes, you would get back everything since you have no deposit required. That's a good thing. I never even thought about the no money down deals because where we are no money down is not an option any more. (The last time we could do no money down was either 2006 or 2007 in our area).
Some lenders do require 3 months of statements. That appears to be lender specific though.
Congrats on your new home! Sounds like a great deal with USDA.
most lenders look at 2 months statements.....
older deposits are considered 'seasoned' and not required to document