If you’re like most people applying for a mortgage, or getting pre-approved for a mortgage you will be asked by your mortgage company “to source your large bank deposits.“(A large deposit is generally considered any non payroll deposit over $1000. This includes simple transfers from checking/savings accounts.)
Why Do Mortgage Companies Care About Your Large Bank Deposits?
- Mortgage companies are required by law (USA Patriot Act) to source deposits in order to combat money laundering. If we do not source the deposit we could be held liable if money laundering is determined to have taken place.
- Mortgage companies want to determine that you have the funds available to pay for your mortgage. More specifically they need to know that you are not relying upon one-time sources of funds such as gifts, gambling winnings, etc to qualify.
If you have large deposits in your bank accounts, you will need to “source” those deposits by providing evidence of the check and/or origin of the funds.
Of course, you can also avoid having to provide evidence for sourcing large deposits by not depositing or transferring funds until your mortgage is finalized.
When you are asked to “source a large deposit” now you know why!
Jarred Alexandrov is the Marketing Director and Loan Coordinator at Fairway Independent Mortgage Corporation
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