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Sourcing Deposits

Home Buyer 2

Whether you are buying a home or refinancing your current mortgage, today’s Home Loan Process can be a burden to the consumer. All loans have to go through the same, standardized procedure of what is called, “Full-Documentation and Verification” process.

Lenders have to verify Employment History, Income History, Residence History and a variety of other “checks and balances” before they even begin to evaluate your Credit Report and quote you a rate and loan term.

In today’s blog, I am going to focus on the Verification and Sourcing of Your Funds. More Specifically, I am going to talk about your Banking services and how you may be questioned about your monthly, weekly and sometimes daily activity you have with your bank. These days your Lender wants to know all about you and your money…

Hey, It’s My Money!

As a Loan Officer for the past 23 years, I have always been a consumer advocate. I just feel that it is already hard enough for the “above-average” American to buy home; and with these new lending laws that keep changing and redefining our jobs as Loan Officers; the long lost, “personal service” is looking more like a gross, invasion of privacy scene that you see from a TSA agent performing a full body cavity search at any American Airport Terminal these days.

The constant probing and questioning that goes on between the Home Buyer and Loan officer these days can make you feel numb to the sensitivity of the subject matter. Loan Underwriters are the final step to the Loan Approval, and they are trained to look at your deposit and transaction history that is listed on your bank statements. Many times, Loan Approvals are subject to the Home Buyer providing additional information on any transaction that appears suspicious to the Underwriter. As the phrase goes, “Crap rolls down hill….” The Loan Officer is left with the awkward conversation to his or her clients of the request and this is when the “customer relationship” is challenged.

For the record, I have never said, “I’m just doing my Job” to any of my clients. However, several times this year, when it comes to questioning a client’s banking activity; I already have been told by a borrower to, “Take a Hike, That’s none of your Business and Go Fhuck Yourself” on several occasions…

Be Boring and Predictable

In Summary, I make sure to send a clear message to all clients BEFORE going into a Loan Application:

BUYERS BEWARE: You need to be boring and predictable for next 30 – 45 days while getting a final loan approval. To be “Boring and predictable” means for you to have minimal activity spending, saving, transferring your funds with any other sources during our loan process. If you have any unusual deposits, transfers or uses with your assets, be prepared to document your activity with additional information which may include, but not limited to: Transaction Receipts, Copies of Cancelled Checks or other means to “Source” the transaction in question by our Loan Underwriter.

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