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Hello - I am in the process of obtaining a mortgage for my first home. I made a large deposit for tuition reimbursement in September, which was right around the time I began looking for a home. I already had some savings and I decided to apply for reimbursement of my Spring 2014 tuition. The total payment made was $1100.
My question is, what type of documentation do I need to provide to justify this deposit? I have the approval from my company signed by my supervisor and upper management. I also have the proof of that I paid the $1100 for tuition to the school out of pocket. What I don't have is the check. It was a mobile deposit, and I shredded the check after the deposit was made.
I received an email from the processor asking for the source of the deposit and supporting documentation. Is tuition reimbursement an acceptable asset for the underwriters? Also, will they be calling my job, the school, and the billing company to get information about me. In the last week, I've had to provide documentation for just about everything short of my DNA. The process seems extremely invasive and its making me feel a bit frustrated.
Sorry for the paranoid questions, I just want to know if this is an acceptable resources before I hand in the documentation.
Lenders having been getting more strict for a few years now. New laws are just being figured out and causing second and third looks by underwriters. One underwriter can require more or less than another. And some of the modern stuff like mobile deposit can blow some people's minds
They can ask for whatever they feel they need. The thing is you want them to do this quickly and not last minute. Do keep a list of all you are providing in case something is asked for a second time and you can say when you sent it.
Do not buy anything new, do not encur any new debt or credit check until after your purchase is recorded after settlement. Wait on the washer/dryer, drapes, paint, loading up on cleaning supplies for the new house, a used car, anything. Even applying for a new credit card, even with the good deals we found if one applied at Kohls lately, and the ensuing credit check can mess things up.
We had to provide a copy of every check deposited over $500 with a signed explanation to our lender. I get paid in cash every other week for one of my jobs. Fun times. I had the same worry for many of my deposits. No one--outside of the meticulous bordering on paranoid--keeps copies of all of their checks. Fortunately, my bank keeps electronic copies of every deposited check for seven years. I'd imagine yours does the same. I just had to walk into a branch and tell them the date of deposit and the amount and they were able to print out copies of the checks.
The process is most definitely invasive, frustrating and stressful, but I doubt they'll be calling anyone about your reimbursement check. Just provide them a copy and it should be forgotten. It's just for their documentation so they can prove if the government comes calling that you're not laundering money for Mexican drug cartels. Like I said, I had many "large" deposits (over $500) while applying for a loan and it wasn't a big deal as long as I had the paperwork.
When we bought in 2009 we had to write a letter of explanation for anything over $300 that wasn't normal payroll or monthly disability. I think maybe 1 item they wanted a copy of the check. We couldn't get them that but we got the check stub as it was the money I got from my dad's Social Security death benefits.
This time around I was totally prepared. Had copies of 3 months statements from our banks, 3 years taxes, etc., LOEs just waiting to be signed and dated. So when they asked for them it would be boom here you go. Ended up not needing a darn thing because of guaranteed equity in our house. Just the statement from the relo company that we would get no less than $14,000 on such and such date no matter if our house sold or not. [We got almost $20,000 because we got an offer the day before the relo co was going to start the buyout process.]
I have to even give a written explanation about a deposit on a check that bounced!! It was a large check but the person who gave it to me wrote it off the wrong account and it bounced. So even though that money never actually went into my account, they want documentation.
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