Providing Bank Statements - Quicken Loans Zing BlogFor some people buying a home, the amount of paperwork required may seem a bit overwhelming. I remember when I was in the process of buying my first home, I kept thinking “Why don’t you just ask me for my first born, already?” I felt like some of the information asked from me wasn’t even necessary. For example, why exactly do lenders need to have all pages of my bank statement? Don’t they just need to see my balance and that’s all?

Well, it wasn’t until I started working in the financial industry and bought my second home, that I understood some of the reasons behind these requests from the mortgage banker.

Verification of Assets When Applying for a Loan

First, let’s talk about why you need to provide up to 30-day history. The bottom line is that lenders need to verify that all assets included in the loan application belong to the person(s) applying for the mortgage loan. The best way to do that is by looking at, at least, a month’s worth of statements.

 A few things to keep in mind

  • If there are any additional deposits made to your account, in addition to your regular income, be prepared to document where these funds came from. If, for example, these funds came from a separate savings account, then you’ll have to present a 30-day history of that account, as well.
  • Lenders have to verify all the assets that will be used for your home purchase. They will be looking into your cash flow and make sure you have the funds needed to close on your loan and to make the monthly payments. They also need to verify that the information provided on the loan application matches these statements.
  • If you’re thinking about using unsecured funds (i.e. a cash advance on a credit card) – don’t! These types of funds can’t be used to buy a house. Besides, you wouldn’t want to pay incredibly high interest rates on this cash advance, would you? You would be basically paying interest on interest.
  • If your parents/aunt/uncle/cousin/grandma were thinking about helping you pay for your new home, keep in mind that, depending on the type of mortgage loan you’re getting, the person giving you this awesome gift may have to provide bank statements of the account(s) the money is coming from.
  • If you apply and take out another loan while in the process of getting your home loan, then your mortgage banker will have to take that new loan into account and recalculate how much you qualify for. In other words, avoid getting new loans or credit cards while you’re in process of getting a mortgage.

So there you have several reasons why your mortgage banker asks you for all these documents. And you even got some additional tips on what to expect as you’re going through the asset verification process. Even though gathering all these statements is sometimes painful, it is so worth it because, at the end, a home will be all yours to enjoy!

Related Posts

This Post Has 23 Comments

    1. Hi Donald:

      I’m not sure exactly what you’re looking for, but I see that you’re working with us, so I’m going to have someone reach out and see if we can help.

      Kevin Graham

  1. If we have overdrafts will it hurt us getting a loan, we are preapproved but now they need documentation to start the loan process.

    1. Hi Mary:

      Depending on the type of loan you’re trying to get, you may be limited to three fees for nonsufficient funds in one month, but that’s not necessarily true for every program. I’m going to recommend you reach out to one of our Home Loan Experts by calling (888) 980-6716.

      Kevin Graham

  2. My question is why a bank would ask for all your financial information all over again, 5+ years into the loan when we are not trying to refinance, missed any payments or been late on a payment? This is for a loan my family had to take out to cover my mother’s debt after she died, and found out she used our family property/business as collateral, so is not really a mortgage loan. Can you help me please?

    1. Hi Vicki:

      That’s a good question that I don’t really have an answer for. The only thing I can think of is that maybe I would call and make sure someone else didn’t try to take out an application in your name. It doesn’t totally make sense.

      Kevin Graham

  3. You folks want my password and sign in to electronically access my bank accounts. I am not comfortable with this. With all of the hacking going on how can i be assured my information is safe? I am also not comfortable with providing personal information concerning my bank accounts for the same reason. I have had loans via Quicken since 1996 and I have never been asked for 3 months of bank statement before. Why now?

    1. Hi Ed:

      I understand your security concerns. You should carefully safeguard your information. I do want to clarify something for you. We don’t store your sign in information including your username or password. You sign in and are asked to provide us with an authorization to look at your bank account which we use to help you get your statements imported electronically. We only get what we need. In terms of why you’re being asked to provide three months of bank statements, different loan options have different requirements and regulations we have to follow. Most loan options require us to verify assets with two or three months of bank statements. They exact regulations will vary from loan option to loan option. I hope this helps!

      Kevin Graham

    1. Depending on the situation and how you want to qualify, you could end up showing both. I’m going to recommend you talk to one of Home Loan Experts about this. You can fill out this form or call 888-728-4702 to get in contact.

  4. I’m curious about what information is needed from bank statements. Does Quicken need to analyze the transaction history on my statements line by line, or do they just use the statements for withdrawal and deposit totals?

    1. There are some deposits that we have to source depending on the size of the deposit. So we do look at individual deposits.

  5. Hello I just have a question I’m Trying to buy a home and they ask for 2 months of statements and I just look at them and I have quite a few over drift don’t understand why when the money was there for the bills and they took longer then inspected to come out so it over drifted my account will that stop me from buying my home

    1. Hi Shakana:

      It may depend on the type of loan you’re applying for. If it’s an FHA or VA loan, it doesn’t count toward the maximum number of times you can have not sufficient funds fees if you have overdraft protection linked to another account they can take the money out of. If it’s not linked to another account, it could count and there may be limits to the number of times a payment can bounce. This doesn’t apply to conventional or jumbo loans. I hope this helps!

      Kevin Graham

  6. If my husband and I took out money from our savings and put it in a protected safe and then redeposited it at a later date would that raise concern as to where all the extra money came from? I took the money out before we were married and re-deposited it under his personal savings and closed my old savings/checking account

    1. Hi Chelsea:

      That’s an excellent question from one of our Home Loan Experts. It may depend on how long the funds are in the account if and when you redeposit them. You can get in touch with one of our experts by filling out this form or calling (888) 728-4702.

      Kevin Graham

  7. If I provided bank statements and tax returns for my in depth pre-qualification letter and worksheet, would I still need to present them again if an offer is accepted on a home within a month of this process?

    1. Hi Christina:

      Typically, they won’t have to ask for the same information after only 30 days. I can’t speak for other lenders, but our preapprovals are good for 90 days. They may choose to verify other information, but they would still have your bank statements, tax returns, etc.

      Kevin Graham

    1. I’m not quite sure what you mean. We can’t provide a loan just to make your bank statement look good. However, if you can provide more information about what you’re looking to accomplish, we can point you in the right direction.

      Kevin Graham

  8. Hi my in law wants to get me a house he is trying to use his 401k but will they take his income tax returns when he files tax season

    1. Hi Natasha:

      We would need to see his tax returns. However, the best person to get in touch with is one of our Home Loan Experts to see what years we would need based on when he files. You can do that by filling out this form or calling 888-728-4702.

      Kevin Graham

Leave a Reply

Your email address will not be published. Required fields are marked *