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How come my loan officer wants me to show my bank statements?

cheryl4785 - 2007-01-04 17:51:14 - Renting Real Estate

I am doing a Stated Income loan. Why do I need to show bank statements if I have direct deposit from my employeer? That would be "showing my income" compared to "stating my income." Do I have to show them? And, is there another way around it? Please help!

Best Answer:

They want to see that you have a balance in your account, more than just your average paycheck. They want to see a history of payments, deposits, activity. However my husband and I did a stated income loan and didn't require this - but our credit scores were almost 800 each. Is your credit okay? Do you have any late payments or a low score? They may need this information to prove you can pay the loan payments.

Answers:

This way they can see if your wages are being garnished at the bank, or if you are way overdrawn on your bank account to the point that they might not be able to collect on your payday loan. Also, if you have a direct withdrawl at your bank for a loan at that same bank, they usually take out that payment from your paycheck before they put any other checks through. Therefore, they may want to check to see if theres any of those that might make the loan payment to them bounce.

your mortgage is usually put into a portfolio with other mortgages to be sold in the secondary market in order that future mortgages can be made with the cash that the portfolios bring in. therefore, yes, the lender wants to see your bank statements and you should show them to him. the lender wants to be assured that you have a steady stream of income as you already stated to it, i.e., your net income. they will want your to see your pay stubs to show your gross. the lower amount of money that you put down, the harder it is to get the mortgage and the more papers they want to see. the investors that buy up the portfolios want to know that the borrowers will not default on the loans, therefore, they want a lot of "security" as per documentation.

If the statements are showing your direct deposits, your broker won't submitt it to the lender. He may need the statements to show you have some assets. Discuss it with him.

They want to see that you have a balance in your account, more than just your average paycheck. They want to see a history of payments, deposits, activity. However my husband and I did a stated income loan and didn't require this - but our credit scores were almost 800 each. Is your credit okay? Do you have any late payments or a low score? They may need this information to prove you can pay the loan payments.

This is not a question that any of us can answer. You should ask for loan officer if you can get around it, but that would make him/her nervous about loaning money to you. It has to do with the lending company's policies. Very simply, if they want to see it and you refuse, they can just refuse to give you the loan. It is not surprising at all that you need to show proof of income. After all, the loan company (or bank) wants to minimize any risk they may be taking.

With a stated income loan you should not be proving income - thats the whole point of stating it. There are loan products out there that you can qualify for by showing bank statements - usually at slightly better rates than going stated. Make sure that if your loan officer is getting a better deal showing bank statements that he is passing those savings to you (i.e a better rate) and not keeping them to make more money. If you don't 'feel' right ......and you know what I mean!.... then I suggest you try a different bank or broker for your peace of mind. I am a Mortgage Broker for all states and my advice is free....I hope this helps. :)

A stated income loan does not get you around the bank statements. A "no-doc" loan or "stated income - stated assets" type of loan would have. The bank statements are for a few things #1 - to see if you have any large deposits - meaning, did you take out any new loans they don't' know about (this could change your debt to income qualifications). #2 - do you have a freeze on your assets- meaning, do you have any pending judgments against you and #3 - can you prove you have the funds/money for closing costs, down payment. If you fall into any of these 3 problems, talk to your loan officer about how you can avoid them or select another loan program. Hope this helps!

A stated income is you bank statement.It is your Proof.You see your income paid by an employer could be more than the electronic Deposit. You know Garnishments, Child support, Debt's deducted before the deposit.

By showing bank statements, you are not proving income. You are proving ASSETS. Your loan program probably requires Stated Income, Verified Assets. You can ask to try for a Stated Income, Stated Assets loan, but you may not qualify or there may be worse pricing involved. Ask him! He should be completely up front with you.

Your bank statements are needed to verify assets. There is no way for the lender to know that the income going into your bank is 100% of your pay check. There are Stated Income/ Verified Asset loans and Stated Income/Stated Assets loans. If you were going SISA- Stated Income/Stated Assets you would not have to show bank statements.

1. it might be a SIVA loan- Stated Income, Verified Assets loan. this is a common program type or 2. your loan officer wants to see for himself/herself to judge what he/she can/can't get away with while the loan is in process (regarding your income or assets). your LO will not likely submit that the the lender/underwriter...they are not going to do anything to screw up your deal.....they are making money off you afterall....