Common eligible sources
Examples may include an asset sale, eligible gift, bonus or commission, retirement withdrawal, or transfer between accounts you own.
Credit and Income
Why large deposits must be sourced
Lenders may need to verify that a large deposit came from an eligible source and is not undisclosed debt. Do not worry about it is not quite the documentation standard underwriting had in mind.
Build the paper trail
Keep statements, deposit records, transfer confirmations, bills of sale, gift documentation, and evidence showing the source account and destination.
Cash is difficult
Undocumented cash may be unusable for the transaction because the lender cannot verify its source.
Call before moving money
I am not being nosy. The underwriter made me ask, and a quick call before the deposit can prevent a paperwork scavenger hunt.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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