3. Moving Money Around
If you’re going to make a down payment of, say, $50,000 to buy a house, every dime must be documented and sourced, explained Parsons, even if it was a transfer, payroll deposit or tax refund. If the money was transferred from another account, say from savings to checking, then the lender would need to see two months’ worth of bank statements from the source. “Large deposits must be explained and documented,” Parsons said, lest the lender think the money came from an unacceptable source like a cash advance or money laundering.