The main purpose of providing bank statements is to show the underwriter that you, the borrower have enough verifiable funds for the down payment on the loan and to cover the closing costs.
On some loans, the bank statements are used to calculate borrowers’ income, in this case the required statements are usually 12 or 24 months
Sourcing and Explaining a large deposit or transfer #
The Source of the deposit has to be another document.
If the large deposit is from a sale property like car, house, land, motorcycle, other goods…etc – the sales receipt is needed. In case of a real property sale, the fully executed closing statement is needed.