Large deposits appear on bank statements (PART 2)

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In some cases, borrowers claim this is a cash amount that they deposited. If banks are unable to source where it comes from, they won’t be able to use it for qualifying the loan. Normal workaround is by reducing your total account balance by the amount of cash deposited. If you still qualify without this large deposit, most banks won’t make an issue out of it. However, a letter of explanation will still be required by most lenders.

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6 thoughts on “Large deposits appear on bank statements (PART 2)

  1. need help on

    I have a bill of sale for car.. would that be sufficient for showing that cash coming from car sale and used to pay off the other laon ? or they reuire additional information regarding title and all ?

    thankyou

    • Underwriter on

      Need help. Yes, it is extremely hard to source cash deposit. Underwriter will definiately request for additional documentations to source fund used to pay off other loans.

  2. Greg on

    Underwriter:

    Do underwriters ever request business tax returns transcripts along with personal? Thanks.

    • Underwriter on

      Business tax return: yes. Business transcript: no

  3. Michele on

    Hello,
    I have 2 checking accounts one only has a few dollars in it, I just use it from time to time when I have a little extra money. I haven’t disclosed the small checking account to my lender. I have disclosed my active checking account. Will they be able to pull up the small account through the verification process without me having disclosed it to them? I don’t want to hide anything but at the same time it would be hard to source the deposits.
    Thank you,
    Tracey

    • Underwriter on

      Verification of deposit can only verify account number(s) that you disclose on your loan application. It won’t disclose any other one that you have for the same bank. Even If it is disclosed, lenders will not ask for large deposits reflected on an account that isn’t being used for qualifying. You should be ok