Lenders want you to explain source of large deposits that appears on your bank statements with a letter of explanation. You already wrote the darn letter, why do they want more documents??? Well, they want to document what you said is true. I am writing some common scenarios that might apply to you. If not, write me a comment and I will respond as soon as possible.
Large deposit is coming from:
- Bonus pay: be prepared to provide a copy of check stub
- Sales of personal items: bill of sales will do
- Fund withdrawal from your 401K or investment account: a copy of statement showing the withdrawal to match with the amount in question
- Refund from student loans: a copy of check and/or the letter provided from the payer
- Gift from parents: Read article Gift Fund
- Fund transfer from another bank account you own: be prepared to provide bank statement from this “other” account
- Refund for earnest money deposit: a letter provided from escrow/title to support that it is a refund from a purchase transaction that did not close
- Cash advance from credit card: a copy of statement showing balance withdrawal and new monthly payment on this account
If none of these situations apply to you, feel free to drop me a comment.