I'm stressed about my bank account? Why do they care about every deposit?

Why do lenders check every deposit in my bank account?

You're wondering why lenders examine every deposit in your bank account during the mortgage process. Lenders review deposits to verify your income sources and make sure the money you're using for your down payment and closing costs came from approved sources. They need to document that funds aren't borrowed money or gifts that weren't properly disclosed, since these could affect your debt-to-income ratio or loan terms. Large or unusual deposits typically require explanation and documentation.

Common deposits that need documentation include salary, bonuses, tax refunds, gifts from family, and transfers between your own accounts. The lender wants to see a clear paper trail showing where your money originated. You can speed up the process by organizing bank statements and gathering documentation for any deposits that aren't regular payroll. If you received gift money for your down payment, you'll need a gift letter from the donor and documentation of the transfer. Bring questions about specific deposits to your lender—they can walk you through exactly what documentation each deposit requires.