Mortgage Loans & Bank Statement Copies?

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What are lenders looking at when they request copies of bank statements as a part of the application/documentation process? Are they going to scrutinize “where” I spend my funds or are they merely looking at deposits?

Currently interest only loan, statement says…You may elect to pay and additional $ 245.94 in order to fully amortize your loan. Does this mean if we pay this amount additional we will pay the loan off as scheduled or if we pay more than that additionally every month (which we do) we will pay off early?

8 Comments
  1. Reply
    Bob D
    February 22, 2011 at 9:56 am

    They care about reserves. Do you have enough money to cover the payment if things go bad?

  2. Reply
    mazziatplay
    February 22, 2011 at 10:03 am

    They are looking for a 2 month history of deposits, nsf checks, and any deposits that are unusual from the account history. They don’t care where you spend yourmoney they are just making sure that the funds you will use for closing are truly yours and to make certain you handle credit responsibly.

  3. Reply
    star v
    February 22, 2011 at 10:44 am

    Many lenders, banks in particular, deal in any sort of secured loan other than second mortgages. Other institutions deal almost exclusively in secured loans. Finance companies that deal in secured loans can be found in your phone book, newspaper, and increasingly, online.Shopand can get a good idea of what each can offer you in terms of interest and other finance charges and fees. Choose the best one for your needs, and apply for the loan.

  4. Reply
    pearlmel
    February 22, 2011 at 11:31 am

    they are looking at deposits aerage doposits show what you are making when you are going stated or if you are a bussiness owner if own your own bussiness.

    If you are required to put a down payment they have to see its in your account its part of the new laws with home laond security. most lenders want to see the money n the account called seasoning they may want to see it there for 2-6 months or be able to see how you saved it!

    this is nothing to worrie about its part if the process! they are just confirming what you have told them that is all!

  5. Reply
    sideline2084
    February 22, 2011 at 11:36 am

    Check out http://www.mortgagefigure.com there is lots of information on mortgages, refinancing, consolidation, bad credit mortgages, etc and may be able to help you.

  6. Reply
    Steve D
    February 22, 2011 at 12:27 pm

    Both – if you pay the $ 245.94, you will have the mortgage paid off at the end of the term (30 years?), while if you pay more than the $ 245.94, you will end up paying it off before the term.

  7. Reply
    knowitall
    February 22, 2011 at 1:23 pm

    An interest only loan means that all of your payment goes to interest – not to the balance so after years of making payments you still owe the original loan amount. Adding the $ 245.94 to each payment means that will go to the principal, thus lowering the loan balance. As long as you pay interest only, you will never pay off the loan.

  8. Reply
    pvscholar
    February 22, 2011 at 1:33 pm

    For Interest Only loans interest, taxes, insurance are payed. There is no payment to the principle. Sounds like the 245.94 will be going to the principal.

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