Verifying Assets: How VA Loans Work
VA loans will review your credit, income and assets as part of the VA loan approval process. And even though you aren’t putting any money down, there’s still closing costs to consider and your VA lender will verify that you in fact have enough money to close on your transaction. Even though your cash requirement is just a few hundred dollars.
When a VA lender reviews your assets, those assets are validated by reviewing the most recent statements from your depositor investment accounts. Whichever account will be used from which to draw funds, that account will be documented.
The VA lender wants to see not only the most recent statement, but all pages from that account as well. I’m sure you’ve received a bank statement at some point or saw another type of document where one page read, “This Page Intentionally Left Blank.” Does the VA lender want to see that page, even though there’s nothing on it? Yes they do, otherwise when they’re looking at pages 1, 2, 3, skipping 4, 5, 6…the lender will ask for page number 4. And won’t proceed with your loan approval without it. Why? Without looking at page 4, the lender doesn’t know if it’s blank or not.
Your lender will also look for any deposits that don’t appear to match up with your pay check dates. For example, say you have direct deposit and get paid on the 15th and 30th of each month. Yet on the 10th, there’s deposit in the amount of $800. Your VA lender wants to know where the $800 came from. It may seem a nuisance at first and a nit-picky question but the lender wants to make sure that deposit isn’t a loan that may affect your ability to pay your debts each month. With an odd deposit, be prepared to document the deposit’s source.
