Mortgage lenders spend their whole lives scouring the financial landscape for signs of financial irresponsibility. Before choosing whether to approve or refuse your house loan application, they will thoroughly examine your finances. They’ll check to determine whether you have enough money for a down payment and if you can cover closing expenses. They’ll check to see if you’ll be able to keep up with your monthly mortgage payments.
They will examine your bank statements in order to attain these objectives. This is why it’s critical to go through your statements, understand what they’re looking for, and make any required modifications in order to acquire the approval and interest rate you desire.
Lenders don’t like seeing overdraft fees
When assessing someone for a house loan, it is usual for a lender to request two months of bank statements. If they notice that you have a lot of overdraft charges, they won’t think you’re a good risk. Whatever the reasons, a long list of inadequate funds or overdrafts on your account can give the impression to a lender that you are not very good at managing your money.
Large deposits coming out of nowhere
The lender may not know where the cash are coming from if substantial deposits are made in lump amounts. They may conclude that they are coming from an inappropriate source, such as an unlawful source, in this situation. If you don’t have a straightforward reason for the hefty deposit – and documentation to back it up – a lender may decide not to count those funds and deny your loan application.
You have credit accounts that aren’t public
You may not aware that if you borrow money from a family member or friend and repay them with monthly instalments, you must notify your lender. When they observe on your bank statement that you have frequently recurring payments to a person, it might raise red flags. Even though it does not appear on your credit report, if you are repaying someone, you should declare it to your bank as a credit account.
Choose the right real estate professional once you’ve been approved
After the bank has accepted you, you can get down to business: looking at available houses to discover the ideal fit for you. It is much simpler to do this when you have the appropriate real estate agent on your side. Berkshire Hathaway HomeServices may be reached at (310) 373-0021 for additional information. We want to add you to our long list of satisfied customers.