Why does mortgage lender need to see my bank statements?

Question

Why does mortgage lender need to see my bank statements? Is my mortgage approval in danger if I’m spending $ on fast food, or unneeded expenses such as a movie theatre?
Majority of my downpayment will be coming from my tax returns, so they’ve requested my most recent bank statements (lots of Christmas spending from December) and my bank statements once I have downpayment Monday next month.

Answer

Proof of income to ensure that you can pay your mortgage for whatever amount they lend you. Small purchases like a movie ticket don't matter, but if you do something like go out and buy a new car during your home buying process, it can cause some issues

Answer

It's pretty common to request the bank statement. I don't think they care what you spend money on. It's more that you have money.

Answer

They want your bank statements for several reasons. Any large deposits need to be clarified. They need to make sure it’s seasoned money at least 1 month minimum already in your account or 3 months previous existing they prefer. Want to make sure it’s not drug or terrorism money. When you get your refund they will make you write a letter of explanation where the money came from. They will ask for new pay stubs and bank statement several times during the process. It’s ridiculous the crap they make you explain. My favorite one is when your paystubs and w2s come from a corporate address and not a local one. You have to explain why you would be buying a home more than 100 miles away from your job. That it’s the corporate office and not the physical working location that they work 10 minute from home. Even if it says on your bank statement Dept ssa or taxation in the name, they still make you write an explanation letter for underwriting. If you and your spouse have separate accounts that don’t have each other’s name, if those funds enter the loan you have to write a letter authorizing your own spouse to use said funds or add them to the account. I’m finally closing a house Friday since June or July with clients of mine. This has been the longest one ever. It’s been one thing after another, every time it goes back to underwriting. The regulations have gotten ridiculous. I get it they are crossing their T’a and dotting their I’s but geez you will see the crap later once underwriting steps in.

Answer

I assume it's to make sure that you'll be able to keep up with the payments

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Proof of income to make sure you can afford your loan I can say I make 200,000 a year doesn’t mean its true lol

Answer

I’ve worked at multiple banks... we don’t give a shit what you spend money on?? We’re looking for direct deposits from your payroll or to confirm that you’re downpayment has not come from an illegitimate source.

Answer

I never had to show my bank statements, but had to provide 3 months worth of pay stubs

Answer

My SO had to show his statements and he has zero savings. They said it’s a formality and that his income and credit score were the main points that determined his eligibility.

Answer

they don't care what you spend your money on, just that you have enough money to pay it off. asking for bank statements is completely normal.

Why does mortgage lender need to see my bank statements?

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