Someone else who is listed as a bank account holder on your bank statements: Yes, it seems to be none of our business. It’s a joint account right? What else do we want to know? It might seem like a joke that we even ask. But it is very important for some loan programs to clarify this information, especially for FHA financing. FHA programs require underwriters to include spouse debt to evaluate our borrower’s ability to repay if the property is located in community states. If, for example, our borrower listed him/herself as unmarried by mistake (and trust me that happens VERY often), yet someone else is showing up on his/her bank statements with the same last name, we might question that our borrower marital status is not correct. If the borrower can write us a letter explaining his/her relationship with the other accountholder (ex: daughter, son, parents), then we should be good to go.
Large deposits on bank statements: Shouldn’t the bank be happy that I have money? Why do you care if I deposit large amount of money into my bank account??? Yes, the more you have the better. However, we want to make sure this deposit is not a cash advance from your credit card, a loan from another bank, or you borrow it from someone that you need to repay back later. If it is, then we will need to take that monthly repayment into consideration because it is considered as debts.
I hope this article gives you some brief insights on why we need these items. I will write more about this topic in the near future.