Mortgage Lenders Always Look at Your Bank Statements

Your dream home is suddenly available and more importantly, affordable! You start looking at various mortgage lenders who can help you secure a loan that can make this dream come true. However, the mortgage lender asks you for your financial statements and they are in disarray. Still, you know you have the money to pay off the loan, and you can’t understand why the lender would insist on them. Well, we’ll give you a complete overview of what exactly they are looking for and why you should always have healthy bank statements.

Overdraft Charges

One of the top red flags they are looking out for are overdraft charges. They will ask you for the last few months’ statements and if they see a pattern of overdraft charges, be assured they aren’t going to be too enthusiastic about lending you money. Overdraft charges indicate you are a bad borrower and your credibility takes a major hit. Of course, it could be a one-off during the holiday season and they may overlook it, however, it always sticks out like a sore thumb. The best practice is to ensure you pay your bills on time and have cleaner statements that can make the lender trust you.

Mortgage Lenders Always Look at Your Bank Statements

Steady Income

Whether you are salaried employee or a businessperson, a lender will always look for a steady line of credit into your account. They have to ensure that you can sustain the paying back of the loan according to the terms and conditions you have settled for.

Large Deposits

Although lenders will be impressed with a big number in your bank account they will be highly weary of any large deposit that is done in the two months prior to the application of the loan. The reasons for these deposits will have to be clearly stated, as they would be suspicious of the large amount. Another, issue with this sudden deposit is that they would consider it as a ‘temporary’ asset that may have been added to secure the loan and boost the person’s credibility.

Credit Commitments 

Another transaction they are on the look out for is a regular payment into another individual’s account. For instance, if you have already taken a loan from a relative or friend and are in the process of paying that back as well, the lender may look at it as a non-disclosed credit account. This may further reduce your credibility, as you would have already borrowed from a person as opposed to a financial institution.

Overall Conduct and Lifestyle

Financial statements can give a good insight into a person’s spending habits and lifestyle. It can tell whether the person is being wise about his money or not being able to live within his means. If you really want to secure that loan, you need to ensure that your financial statements are proof that you know what you are doing with your money and have a legitimate plan for the future.

Looking at buying your dream home in Accra this year? Get in touch with us and we’ll take you through a variety of properties that suit all kind of budgets to take away your tension about home loans and mortgage lenders.

 

13 Feb 2018