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When you apply for a mortgage, they absolutely need you to justify recent large deposits. This caused me a slight headache when I applied for a mortgage, as I h
by gizmo686 5y ago
When you apply for a mortgage, they absolutely need you to justify recent large deposits. This caused me a slight headache when I applied for a mortgage, as I had moved all the money I would need into 1 account before the underwriter approved the loan. I just had to provide documentation from the source banks that I was the source of the transfer and everything was fine; but I was advised that in the future, it is easier to apply with your money where it is, then consolidate it after you are verified.
This also comes up with gifts, where the lender needs a signed statement from the giver that it is a gift, not a loan. E.G. to prevent exactly what the person in this story was trying to do.
I suspect there is also an anti money laundering component to this requirement as well.
- HWR_14 5y agoI guess it makes sense that they need to make sure the deposit was not a stealth loan not on your credit report when applying for a mortgage. Thanks. I will say, afaik, the anti money laundering implications are not in play here and are what I was initially thinking about. The bank will report the large deposit to the government. If you're money laundering that's between you and t he government (as long as the bank reports the activity) This is much clearer than the post I originally responded to which talked about stamp taxes and capital gains.