Documenting Your Assets – The Paper Trail

JC_DOCUMENTING YOUR ASSETS THE PAPER TRAILAssets must be verified to ensure a borrower has sufficient funds to complete the mortgage transaction and, if required, adequate reserves after closing. Money that has been deposited into your account at least two months prior to closing is considered seasoned funds. These assets must be tracked and documented 60 days prior to the date of closing. Assets may be verified with copies of bank statements or investment portfolio statements that cover activity in the borrower’s accounts. If the account reflects large deposits/transfers, underwriting will require evidence that these funds are from an allowable source per underwriting guidelines

Here are some examples of inconsistent deposits/transfers that will require documentation:

  • Deposits greater than $250.00
  • Single or cumulative deposits/transfers that are greater than $250.00
  • Out of cycle payroll deposits/transfers, e.g. borrower is paid on the 1st and 15th of the month, but deposits made by the employer are on the 10th.
  • Statement has a significantly greater balance than previous balances.
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