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Question for Charles - Bank Statements


chingasaholo
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Charles,

a quick question, my buddy's been told he has to continue to supply the

loan officer with bank statements until the loan closes. Is this normal? He's also planning on opening a savings account and putting some money that he got from the IRS into it, should he even worry about disclosing that to them? I mean he's already giving them statements from his checking account. If he doesnt disclose that account can they find out about it? He's not planning on using those funds for settlement purposes or anything related to the loan.....If he does open the account we're basically concerned that this could mess up the loan if they find out about it....They are just getting really frustrated about doling out all this documentation, some of which has no relation to a mortgage loan.

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Remember the "dont ask-dont tell" saying. One thing that I have learned the hard way is, when they ask a question, answer it, dont go into detail unless they ask more question. If they ask for something, give them that, not anything else. If they want to see personal bank statements, give them one with enough money in it to take care of the requirements (sometimes they will need to source down payments/closing costs etc" if you tell them about another account, you will just have to provide months history of that account too.

Charles

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I was just concerned about them opening a new account. They are very privacy concious. They are now living off cash funds now, they loan officer has them providing documentation every day for this and that and every time they withdraw and deposit money they are afraid they'll be asked for documentation of some sort, they have already provided 3 months worth of statements, gift letters, etc...They even had to provide a copy of the 400.00 child credit check they got from the IRS to them. I think it's getting a bit ridiculous myself. There has to be a point where the documentation stops, If they have to keep providing this stuff up till close there's a problem. There is nothing wrong with there statements, other than deposits for paychecks and minor gifts (30-40 dollar checks for birthday presents and such) there is nothing out of the ordinary. They have plenty of income, although the account is low as the wife just recently got a new job after 3 months of not working which should be understandable to the LO and underwriter I would hope. The balance should creep up slowly......They just have to give it time. They wanted the savings account to remain secret from the LO and scared that if they get it and dont tell him, he will find out and cause more problems. I doubt they can find out, but I'm not sure......If the account isnt being used to source closing costs, etc...I honestly dont know why they care, but then again watching this whole process transpire is nuts.

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They do not need to tell him about their new account. It has nothing to do with the loan. All that the lender needs to know is "where is the money coming from for the down payment and for their portion of the closing costs. That is it. End of story. There are a lot of circumstances where there is a need to disclose deposits, but not this type of a loan.

Again, They need to show/prove that the money that they are using for the loan is not coming from the sellers etc, but that is all the proof. I presume that they have enough funds for assets to prove that already.

There is no way that the LO will find out about the account, unless they tell him. There is no "magic credit report" type thing that we can run to find out about other savings accounts.

RE: Child care expenses. There is nothing that says that after you sign the forms applying for the loan that you have to disclose other costs. ALSO, the only things that figure into DTI are loans/credit cards. SO, not to worry, but not to tell him either. I end up finding out about a lot of stuff that I forget about, but I don't know how other LO's are.

I just now did a loan in 2 weeks, so it can be done, but it is an unbelievable rush and everything has to work perfectly.

It is their right to find out who the appraiser is, and contact him directly "to set up the appt." They can call him after it is supposed to be completed "because our insurance agent needs the first 2 pages". It is their right to know who the title company is, and ask the LO then to keep them informed as to when the title and Closing Protection letter comes in.

Charles

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