Is it really necessary that you have to have a checking or savings account with a bank in order to get a home loan?
2007-05-31 13:10:48 · 11 answers · asked by 1108 1 in Business & Finance ➔ Renting & Real Estate
Yes I think so but I would go through a financial company that handles home loans better interest rates and stuff
2007-05-31 13:13:27 · answer #1 · answered by Texasmom26/30 2 · 0⤊ 0⤋
Yes, as a practical matter you do. The mortgage underwriter is going to want to see proof that you have the necessary funds for the down payment and closing costs. The standard way to verify that is to examine your bank statements going back 3 months or so.
As an underwriter, I'd be very concerned about a borrower who didn't even have a savings account. Managing bank accounts helps establish evidence of financial responsibility along with being part of your credit history.
2007-05-31 13:52:09 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
To evaluate the risk that they are taking by loaning money to you, the bank needs to establish your financial history. They do this by checking your credit, and seeing that you have been able to save money in the past. Without bank accounts, they have no way of telling what kind of borrower you will be and thus are not going to give you a loan.
2007-05-31 13:38:45 · answer #3 · answered by Ron B 3 · 0⤊ 0⤋
Since it is necessary to have some money to put down as a percentage of the money you are going to borrow ( except some extraordinary cases)
For example 5% down or 10% dow or 20% down, it all depends How you qualify for the mortgage.
The bank will ask you where do you keep the money and
most often they will verify whether what you say is accurate.
For that reason the money has to be deposited, so they are able to verify if you have the necessary money
Suggestion to you; Go to any bank and ask them to
pre - qualify you for a mortgage, it is free of charge and it should be your first step
2007-05-31 13:30:16 · answer #4 · answered by argus 5 · 0⤊ 0⤋
Yes it is. I just purchased my first home in 2004. Lenders like to see checking and savings to see that you know how to save/manage money and that you pay your bills. It shows stability. It is also good for you because with a house may unexpected things can come up like roof problems, termites, or improvements etc. You need to have a nest egg saved up to cover these unforseen events or additions..
2007-05-31 13:16:37 · answer #5 · answered by Glamour Girl 2 · 0⤊ 0⤋
Really, it does.
It helps establish that you have an economic foundation of some sort and is kind of a prerequisite to getting a house.
It does NOT have to be with the same bank that is providing the loan, even though they would LIKE you to, it is not required.
2007-05-31 13:15:03 · answer #6 · answered by tabulator32 6 · 0⤊ 0⤋
Absolutely! And credit cards, previous long term loans (a car, for example), and proof of income. When applying for a major loan, such as a home loan, lenders are going to do a COMPLETE credit check to ensure you are worthy of their money and will reliably pay it back!
2007-05-31 13:13:48 · answer #7 · answered by life is good 6 · 1⤊ 0⤋
I'm not sure its necessary, but its definitely helpful. You may get a lending company specializing in loaning to people with credit issues, but your interest rates are gonna probably be ridiculous
2007-05-31 13:14:00 · answer #8 · answered by cpblair 2 · 0⤊ 0⤋
Generally speaking... yes. Almost all mortgages function on an automatic withdrawal system. They don't want to have to rely on you to send them a check, or do an on-line payment every month.
2007-05-31 13:14:01 · answer #9 · answered by Jason T 2 · 0⤊ 0⤋
yes they need to see record of income coming in on a regular basis.. they can see paystubs but bank account is another way to make sure you have steady money coming in.. here is a site with some good buyer tips maybe it will have something that will explain it better
http://www.deedeehomes.com/RealEstateTips/HomeBuying/Default.aspx
2007-05-31 16:51:25 · answer #10 · answered by Pure Genius 3 · 0⤊ 0⤋