Bank & Brokerage Accounts

    An overview of items we will need from you regarding your bank and brokerage accounts

    The most common information lenders require of borrowers is from bank and brokerage accounts. Luckily, it’s some of the easiest to find, as you probably log into your banking (checking and savings) and brokerage (investment, 401(k), IRA) accounts fairly often. 

    Action Items: Download recent monthly statements for all of your bank and brokerage accounts. Fill out a Form 1006. Upload everything to the Closing Tracker.

    What do we need?

    You will need to provide the last 60 days, or most recent quarter, of bank statements (example here!) for all bank and investment accounts you will use for closing, down payment, or financial reserves. Please make sure the statements you upload contain all of the following information:

    • Your name or your co-borrower’s name. 
    • At least the last four digits of your account number.
    • The time period that the statement covers. 
      • Note: If you will get a new statement for the current month within a day or two, please upload that in addition to the second most recent statement.
    • All transactions:
      • Deposits and withdrawals for depository accounts, which are any accounts that you can withdraw from or deposit money into.
      • Purchases and sales for financial portfolio accounts.
    • The ending account balance.
    • All pages of the statements.
    • Unfortunately, a screenshot of the first page won’t work, as 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.

    If you are using a 401(k) or retirement account, please see Assets: 401(k) or Retirement Funds.

    Do any of your accounts have deposits that are 50% or more of your monthly income? If so, please see Assets: Gift Funds, Sales Proceeds, Account Transfers, and Large Deposits.

    Where can I find my bank statement?

    Download a full monthly statement from your bank or brokerage account’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 two most recent ones from the past 60 days.

    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. 

    Step 5: Upload the documents to your Closing Tracker.

    Note: If your most recent statement isn't ready, you can download a transaction history. See instructions here.

    Why do we need this?

    Lenders use your bank statements to verify that you have enough funds to pay for your downpayment and monthly mortgage payments. They also want to make sure that if an unexpected financial change occurs, you will still be able to cover at least the next 2 months of mortgage payments. 

    We only need 2 months of statements, because any loans taken out previously would appear on your credit report.

    Financial institutions are required to collect certain information about all borrowers, in order to comply with the USA PATRIOT Act, which targets foreign money laundering. You can read more about it on the Treasury Department website.

    Lenders require funds to be sourced and seasoned, which means that they know where the money is coming from and that it has been in the account for a minimum amount of time. Reviewing your bank statements is how they do it.

    Common issues

    Large deposits into banking accounts sometimes require explanation or additional documentation, including gifts.

    Overdrafts—when you withdraw more money than was in your bank account at the time—can categorize borrowers as risky.

    📁Bank Statement Example

    Related article: Account Transaction History

    → Continue to the next article in this series, Assets: 401(k) or Retirement Funds

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.