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Bank Transactions During Underwriting Process

I applied for a mortgage on 10/31 and had the property appraised on 11/8. The bank manager said that I should know something by 11/15. At the time of application, I was not asked for bank statements. Is it possible that they will still want to see those? I have a large car repair that needs to be done this week which will be about $600 (great timing, I know). If they asked for bank statements at this point and saw a $600 transaction, would that raise concern with them?? 
  • November 11 2013 - Town of Bennington
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Answers (6)

That much money shouldn't cause too much of a problem, unless it prevents you from having the right amount of funds that you need. If they do see it and ask you, then tell them the truth and they should be understanding. Overall, this shouldn't be a deal breaking situation unless you have no other funds for your closing costs and down payment. Well I hope this helps! If you have any further questions, feel free to contact me.

Good Luck!
  • November 12 2013
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I'm a strong believer that honesty is the best course of action.  Be sure to communicate with your loan officer.  They want to help you get your loan closed and they can assist you in this. 
  • November 11 2013
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Profile picture for GMerino
To answer your question if you are pulling money out of your account that will not raise a concern.  The only time that they question your assets if you made any large deposits that are not normal, like a cash deposit of $1000 or so.  At that point it would need to be sourced.  If you are purchasing a home or you are refinancing a home and you need the assets in your bank account and you are $600.00 shy of your closing costs fees the underwriter would most likely say that you are short funds to close. 

If you are good and you have sufficient money to close, do not worry about getting your car fixed.
  • November 11 2013
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Rest easy-bring in the receipt for the auto repair when you bring in 2 months bank statements. It's simple. As long as that $600 bill doesn't cause a shortage of funds that was required for the purchase of the home-you should be ok. :)
  • November 11 2013
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Their concerns are non payroll cash deposits.  They are not worried about withdraws really unless you need the funds to close the loan. 

  • November 11 2013
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First off, if your bank didn't check your bank statements or taxes they didn't actually give you a loan pre-approval.  I avoid using banks and other institutional lenders at all costs when obtaining a home loan. Why?  There are many many reasons, but here are a few.  They always take longer to close a loan than a mortgage broker.  They always have fewer loan options for a mortgage broker.  They always have more fees than a mortgage broker.  At this point you're probably stuck with your lender unless you want to pay for another appraisal.  They will check your bank statements eventually, and often check them a second imd before closing.  They often check your credit score again and verify your employment too, a few days before closing.  So, making any sort of purchases out of the ordinary, applying for a new credit card, or doing anything that could impact your credit or would be out of the ordinary for your typical expenditures is a bad idea.  Any small item can cause your loan approval to be delayed including a $600 car expense.  If you can wait until your loan closes it would be a good idea.  If you need the repairs done, you way be ok and just need to show proof of what the money was used for and provide a letter of explanation.  I strongly recommend you run this by the underwriter, not your mortgage banker, to get an answer.  Every underwriter is a little different and this may or may not be a big issue for you.
  • November 11 2013
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