Account Activities Matter When
Applying for your Chicagoland Mortgage
And a note: That's even if a page in the statement's sequence is only numbered and blank (something that trips-up many Applicants).
Why?
There are several reasons ... but the following are the issues that most commonly trigger Lenders' requests for full statement/documentation:
- "Large" deposits from Income/Payroll Transfers, as well as deposits made frequently from other accounts, cash, etc. (Tip: Avoid making cash deposits into accounts at all costs!)
- Having to identify sources of deposits. (Deposits direct from Payroll, Social Security, transfers from other accounts, "non-descript" deposits, check deposits, or wire transfers)
- Automatic monthly payments for recurring debt
- Proof of Earnest Money Checks clearing the account. (This is almost always verified on PURCHASE transactions)
- Proof of Gift Money received (If applicable)
- Proof of Consistency/Timeliness of payments for Rent or Housing
- Type of expenditures (ability to manage funds or budgets)
It's not uncommon for me to be questioned by my Chicagoland Borrowers regarding these requests, as Borrowers want to know ...
But look at all the scenarios and concerns Mortgage Underwriters must consider regarding these funds and their place of origin:
- A Borrower takes out a Personal Loan, Signature Loan, or a Credit Card Advance to fund their Down Payment or to be able to close their loan. (More debt is incurred in these instances and that can affect a Borrower's ability to repay their Mortgage)
- A "gift" of funds is received from a relative, etc., but is, in reality, a loan where funds will need to be repaid.
- The funds come from a new or "unreported" loan secured by other Real Estate Owned by the Borrower (such as a Home Equity Line of Credit)
- A Borrower will be increasing their Housing Payment by a significant amount ... or will be depleting all of their liquid assets for Down Payment and Closing Costs.
- The funds for Down Payment entered a Borrower's Account in the last 60 days. (A huge red flag for Underwriters, as they need to know WHERE those funds came from.)
Potential Chicagoland Borrowers and current Mortgage Applicants must be aware: Statements from their Bank, Investment Account, and Retirement Fund will be requested of them, then reviewed very carefully (in their entirety) by Mortgage Underwriters.
Because of this fact, it's wise for Borrowers to: Make it a habit to fully-document, save, and organize financial records as they head towards the time for Mortgage Pre-Qualification and then subsequent Mortgage Application.
It's also wise to limit the number of transfers of funds they make between accounts.
By practicing the above suggestions, Borrowers ensure that they can fulfill any requests received by Underwriters quickly and easily ...
* Hoping to Buy or Refinance a home or Investment Property in New Lenox, the greater Chicagoland area, IL & Wisconsin?
Contact Me today! I'll be happy to put my 40 years of mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed #216987
American Portfolio Mortgage Corp
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Channahon, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Your Referrals & Testimonials are Greatly Appreciated!
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