Down payment
When you apply for a mortgage, the bank is like a financial detective, determined to uncover the origin story of your down payment funds. To aid in their investigation, they'll request a paper trail, which could include bank statements, investment account statements, wire transfer confirmation and receipt (sample below) and even gift letters if someone's lending a helping hand.
Now, here's where things get interesting. The bank will scrutinize these documents with the intensity of a thousand suns. They'll search for any red flags, like large deposits from mysterious sources or an unexpected cash influx that doesn't match your income. If everything checks out, you're in the clear! But if the bank suspects something fishy, they might ask for more information or even reject your application.
In short, banks track the source of down payments to ensure that the funds come from legitimate sources and comply with anti-money laundering regulations. So, keep your financial records in order, don't move your funds around like a shell game, and you'll be well on your way to securing that sweet, sweet mortgage approval.
If you have any more questions or need help with your down payment, feel free to ask!
