So you are starting the process of getting a home loan? Great! Here is a brief summary of what mortgage lenders will be looking at when they ask for your bank statement.
Lenders will typically look to the past 2-3 months of bank records when they make a judgment on if you are going to be a good borrower. This will include any overdraft charges on your account, and this can be a flag for lenders. Having a history of overdrafts show you may struggle with finances.
Unless you can prove the source of the deposit is credible, large deposits are a flag to lenders. These deposits may not be from the places that lenders want to see when they qualify you. Usually these funds will be overlooked when lenders make a final decision. If you can provide a source for the deposits though, other than the cash under your bed, lenders might be able to use it!
New lines of credit
Getting a house is exciting and you may want a shiny new car to go along with it! However, when you are applying for a loan its best to not open any new credit cards or get loans for cars and such.
So whats the takeaway from this? Keep a watchful eye on your finances for a few months before you start the loan process. Lenders like to see stability from your bank account and if its there both parties will come out ahead! Lenders also look at your finances once more before closing so make sure to keep your accounts healthy throughout the home buying process!