When I submit my bank statements to a lender what kind of info are they looking for?

Question:

My husband and I are currently in the process of buying our very first home. We’d been pre-approved, but we’re looking at what may be asked for us moving forward in the process.

Especially as I’m a school teacher,  I don’t receive paychecks in the summer, so I won’t have any income coming into my bank account in the summer months. I don’t want to raise red flags, but I do have past paychecks and W2’s that prove I do receive the income.

I also work as a babysitter in the summer, but I’m paid by personal checks which are deposited into my account. When an underwriter at a bank asks for bank statements, what kind of info are they looking out for?

Answer:

Normally you need to paper trail any large deposit outside of payroll. Some things the underwriter may look for on a bank statement would be non-sufficient fund charges, large deposits that appear to be cash, or liabilities. For instance, ACH payments on liabilities that might not be on your credit report.

It’s not a problem that you don’t receive paychecks during the summer since the underwriter will request a verification of employment and confirm your annual pay.

The fact that you get paychecks from the babysitting gig is fine. The underwriter might ask for copies of the checks depending on the amounts.

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