Our goal is to make your mortgage process as stress free as possible and asset verification has proved problimatic for many. With that in mind please review this document as it is a critical piece of the approval process and we need your partnership to obtain the necessary documentation to move your loan through the process to a successful closing.
Initial down payment funds that are placed in to escrow need to be verified prior to closing. The sooner we can do this the faster your loan will be clear to close.
Conventional Loans: We will require a copy of the cancelled escrow check(s) for your initial deposit and evidence that the funds have cleared your bank account. We can use bank statements (all pages) and the copy of the check(s). Print outs from the internet may be acceptable if they show the Bank’s name, your name and account information and the URL address on the printout. Screen shots are not acceptable. Print out from banks, that are stamped and signed by the bank representative are also acceptable. Histories of accounts should cover the period from the last statement we have to the date of the checks being cleared. Please note that any large non-payroll deposit that appears in these printouts may need to be verified.
Gift funds: On conventional loans gifts funds are verified by an executed gift letter we will supply. We will need the cancelled check from the donor (a family member) and evidence that the funds have been deposited in to your account.
Liquidation of non- cash accounts: These include 401k, IRA’s and Stock accounts. If the distribution is a loan, we will need the terms of the loan. In all cases, liquidation will need to be documented. The earlier this is done in the process, the faster your loan will be cleared to close
Government Loans (FHA, USDA and VA): Documentation is generally the same for verifying assets except for gifts.
Gift funds: On government loans gift funds are documented with the gift letter, cancelled check and deposit in to your account. The important addition here is the loans require proof of donor’s ability to provide these funds. This generally can be done in one of two ways. A copy of the donor’s bank statement showing sufficient funds. However, large deposits in to the donor’s account will be questioned. Any large deposit into the donors account will need to be soucred. A letter on bank letter head signed by a bank representative stating that the donor has sufficient funds to cover the gift amount.
If you are unsure about these requirements, please discuss with your loan officer to clarify. We cannot clear this condition without your partnership in the process. Thank you!