Why Lenders Need Bank Statements For A Mortgage

Why Do Lenders Need Bank Statements to Approve a Mortgage?

When you begin the mortgage process, underwriters want to be sure you have the funds to cover the substantial costs that come with taking on a mortgage. Bank statements prove that you have money for a down payment, provide insight into your spending patterns and demonstrate that your income matches your claims.

What Do Lenders Look For In Bank Statements?

Bank statements offer demonstrable proof of how you spend your money ‑— and where you get it. They also prove your ability to live within your means and maintain a reasonable degree of financial stability.

Frequently Asked Questions

Several questions often arise in the discussion of bank statements and their role in obtaining a mortgage. They include:

What are sourced and seasoned funds?

During the mortgage process, you’ll likely see the terms “sourced funds” and “seasoned funds.” These are both important classifications for lenders — the former refers to the origin of the money in your account, while the latter indicates that the money has been in your account for up to 90 days before you applied for a mortgage.

Can a bank VOD help solve statement issues?

Questions and discrepancies can arise when you are going through the mortgage process, but a bank's verification of deposit (VOD) can help resolve some of these problems by showing the source of funds that appear in your bank statements. A VOD essentially provides proof that your money came from a legitimate source.

How do I get bank statements?

You can typically obtain your bank statement directly from your bank or credit union by accessing your account online and downloading your statement there. Or, if you prefer that in-person touch, you can visit a branch location and request printed copies of your bank statements.

The Bottom Line: Bank Statements Are Needed for a Mortgage

In short, bank statements are a critical part of the mortgage review process. They provide lenders with insight into your level of financial responsibility, your ability to manage your money and — perhaps most importantly — how much money you can put toward your mortgage. To get started building your savings for a house, download the Rocket Money℠ app today!