Disclosing your trading account statements for mortgage app

[beta]

Hopefully this forum is suitable for this topic.

What can you do if the underwriter is pressing you to see your trading statements in full detail. I am running a proprietary platform that is largely customized by me and has taken over a decade to get to this point of development.

On an income basis and equity to debt ratio (not including cap gain or investment related income) we actually qualify for the mortgage loan, no problem. But we are putting down 30% (largely in part to avoid PMI and also waive escrow with no penalty) and since the funds for the 30% down are coming from the trading account, that is why I am getting some push back on this issue.

It sounds like they might be ultimately flexible in terms of the data I have to end up showing them but wondering what other folks have done in similar circumstances. I should probably also try another lender out as well if it comes to that point. Thanks.

 

[nth]

Hopefully this forum is suitable for this topic.

What can you do if the underwriter is pressing you to see your trading statements in full detail. I am running a proprietary platform that is largely customized by me and has taken over a decade to get to this point of development.

On an income basis and equity to debt ratio (not including cap gain or investment related income) we actually qualify for the mortgage loan, no problem. But we are putting down 30% (largely in part to avoid PMI and also waive escrow with no penalty) and since the funds for the 30% down are coming from the trading account, that is why I am getting some push back on this issue.

It sounds like they might be ultimately flexible in terms of the data I have to end up showing them but wondering what other folks have done in similar circumstances. I should probably also try another lender out as well if it comes to that point. Thanks.

Based only on what you have said, I'm guessing that they just want to be sure the funds are seasoned (source and seasoned.. does it make sense is their question). They should be able to use a CPA statement. Ask them exactly what they need the letter to document.

 

[ofthomas]

like nth said, ask them what they want to see exactly... but what you should have done, or should do, is transfer $$$ to another account regularly and then use that as source of funds for anything like buying a house...

they want to see two things... seasoning and source of funds... realistically, you can show the underwriter the statements with all the transactions, is not like they will be able to decipher it.. but... you can also go to your clearing and get an end of month report... something that skips the transactions .. and provide them that report...

just a few thoughts...

 

[nth]

what you should have done, or should do, is transfer $$$ to another account regularly and then use that as source of funds for anything like buying a house...

+1
Thinking about all that, they might be wondering.. if the funds are coming from business related funds, then what will it do to the source of income after the money is withdrawn for close. So they may want to see transactions to draw cash flow. They won't be able to figure out 10 yrs of work, without his code. But they will scrutinize every document he sends them, looking for risk. A CPA can give them what they need. But it gets super annoying if you have to go back and forth to the CPA to have all the correct wordage documentation exactly the way they want it. And don't give them more. Or they'll find something to complain about lol.

I'd def nicely remind them that their competitor down the street is begging to do the loan. Only 70% LTV. They have flexibility. They just need to doc it up right so it's marketable in the secondary market.

In my opinion, Wells Fargo is the biggest pain in the butt. But they sure weathered out the storm better than most..

Lesson: as you stated, kick the money out to savings over time.