Asset: Bank Statements
A bank statement is a document provided by a financial institution to an account holder that shows a summary of their transactions and balances within a specified period. They serve as a record of account activity for assets such as checking accounts, savings accounts, trust accounts, and individual development accounts (IDAs).
Context: Identifying the document.
Bank header
Account summary
Key takeaways: Important information.
Statement period
Accountholder’s name
Account number
Closing/ending balance
Large deposits: Lenders must review bank statements for large deposits, which are significant sums of money that are deposited into a borrower’s bank account in a short time span. When a large deposit is found, the lender may request additional documentation to verify the source of funds. In conventional loans, large deposits are any single deposit exceeding 50% of total qualifying income. In FHA loans, large deposits are a single deposit exceeding 1% of the property sales price.