If you are in the market to buy real estate, get your bank in order because when it comes to closing a loan, Time is Money. Lender requirements may be daunting but being prepared and providing the necessary documents as timely as possible keeps the process on schedule to close on time.
One thing your lender will require are bank statements from your checking and savings accounts. Keep these tips in mind:
1. All pages of the statements are required. If the statement consists of 8 pages and page 8-8 is blank you still need to include it.
2. A printed online summary is not acceptable. The bank statement must contain the name and address of the banking institution, the name of the account holder(s) and the account number(s).
3. If the account is joint with someone not on the loan, then send a signed and dated letter from the non-borrower stating that you (the borrower) have full access to the account.
4. If you have made transfers into your account from another account then two months statements from that account will be required as well.
5. Non-payroll deposits must be documented with copies of the actual checks which were deposited, as well as an explanation of the source.
6. If you have ANY check return or NSF fees on your bank statement send a signed and dated letter of explanation for each.
7. Make sure your Earnest Money (EM) check has cleared the bank. The EM cannot be listed as a credit on the HUD at closing unless it has cleared. A copy of the front and back of the cancelled check, as well as the bank statement showing where the money cleared the account will document this.
The process from contract to closing can be confusing, and difficult to understand at best. However, if you comply with the lender's requests as quickly as possible you will be enjoying your new home on schedule.
I would be honored to help you with your next real estate purchase.
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