What to provide when there are recent, large deposits into your bank account.
If you received any deposits in your bank account in the last 60 days that were 50% or more of your total monthly income, these will count as large deposits. Large deposits are required to be “sourced” in order to prove that your funds for closing costs are legitimate.
What do we need?
In order to prove you have enough funds for closing costs, we will typically need to see the last 60 days of bank statements for all the accounts you will be using. In addition to these accounts, we will also need further documentation for any large deposits.
Transferred money from another account under your name:
- 60 days of account history of the original account to show the money was “seasoned”
- The official bank statement showing the money leaving the original account
Transferred funds from a retirement account:
- If this was a loan, provide the original terms of the 401k loan
- 60 days of account history of the retirement account to show the money was “seasoned”
- The official retirement statement showing the money leaving the original account or documentation from the institution confirming how much you withdrew
Liquidated stocks or similar transactions:
- 60 days of account history of the brokerage account to show the money was “seasoned”
- The official account statement showing the money leaving the original account or documentation from the institution confirming how much you withdrew
Sold a vehicle or property:
- Please see Sales Proceeds for more info
If you received money from a family member or spouse as a gift:
- Please see Gift Funds for more info
Received a large bonus or payment from your W-2 job:
- A copy of your paystub or documentation of the payment from your employer
Received a payout from an insurance claim:
- Copy of the check you deposited (you can typically get this from your bank website by logging in to your account)
Other large deposits:
- Note: if the deposit was all cash, this typically cannot be “sourced” and you will not be able to count this money towards qualification.
- See Assets We Cannot Accept for more information.
Please make sure all statements you upload contain all of the following information:
- You or your co-borrower’s name.
- At least the last four digits of your account number.
- The time period that the statement covers
- All transactions
- The start and ending account balance
- All pages of the statements (please do NOT only upload a screenshot of the first page, lenders require the complete statement)
- If you use online banking to generate your bank statements, please include the bank’s URL so the lender can source the information.
Where can I find statements?
The full downloaded statement is required and can be found on your bank’s website.
Step 1: Go to your bank’s website and log into your account.
Step 2: Look for a tab called “Documents” or “Statements”. For some banks, it might be under the “Account” tab.
Step 3: Once you have found where your bank keeps statements, you should see statements with different dates. Download the PDFs of the statements you need (we cannot accept CSV files)
Step 4: Rename the statements with their dates and your name. This is a good way to confirm that you are uploading documents from the correct time frame. Upload the documents to your closing tracker.
Why do we need this?
We need to prove that funds are sourced and seasoned. According to Fannie Mae “If the source of a large deposit is readily identifiable on the account statement(s), such as a direct deposit from an employer (payroll), the Social Security Administration, or IRS or state income tax refund, or a transfer of funds between verified accounts, and the source of the deposit is printed on the statement, the lender does not need to obtain further explanation or documentation. However, if the source of the deposit is printed on the statement, but the lender still has questions as to whether the funds may have been borrowed, the lender should obtain additional documentation.” – Fannie Mae.