How does a Colorado mortgage lender verify bank statements?

One of the most significant factors in closing a mortgage is verifying your financial information, like your bank statements. This is true about all mortgage programs. But when you’re self-employed or have a unique financial situation, your bank statements are even more critical to your loan application. 

If you are self-employed and having difficulty applying for a conventional loan, a bank statement loan to buy in Colorado is a good option.

Let’s look at how Colorado lenders verify bank statements so that you’ll know what information to provide your lender.

Why do lenders need to verify bank statements?

Lenders need to verify bank statements submitted during a loan application to determine assets and the borrower's ability to repay the loan. Taking additional steps to authenticate also helps lenders to prevent identity theft and other types of fraud. So while it seems like a hassle, in reality, it provides a layer of protection for you, the borrower.

Understanding how lenders verify bank statements

When you apply with Castle Rock Mortgage Loans, we verify your current income, savings, assets, and creditworthiness. The precise documentation may vary a bit, but generally speaking, the process may look like the following:

We will ask for proof of deposit to show that money has been deposited or accumulated in your bank account. This document shows us that you have enough money saved to pay for your down payment and closing costs.

For example, if you are applying for a $100,000 loan with a 20% downpayment, you’ll need to pay $20,000 upfront and around $5,000 in closing costs. In that case, we’ll look for proof of deposit that shows that you have $25k or more in your account. 

Usually, borrowers give us two of the most recent statements, which we will use and contact the bank to verify the information.

What are the types of information you need to submit for verification?

Here are the most common types of information required when verifying bank statements:

  • Bank account number

  • Account type

  • Account holder names

  • Open date and status

  • Balance information, current balance, and average balance history

  • Current interest rate

  • Account closed date

  • Length of term, interest rate, interest paid, withdrawal penalties

Are you ready to buy your new property in Colorado?

If you want to buy property for your new office, building, or industrial complex, you can pre-approve for a commercial mortgage loan in Colorado.

To learn more about your loan options, meet with our loan officers, who would be glad to assist you.

Call or message us on our website today.

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.