Educational only. No financial accounts are accessed and no loan decisions are made here.

 Underwriters need clear documentation showing your available funds for down payment, closing costs, and any required deposits. 

 Some loans require reserves, and others don’t — but having extra funds after closing can reduce risk in underwriting. 

 Big, irregular deposits often require sourcing (where it came from) and supporting documentation.  

 Gift money is common, but it typically needs a signed gift letter and proof of transfer depending on the loan and situation. 

 Funds that have been sitting in your account without unusual activity are generally simpler to document than last-minute money movement. 

 Moving money between accounts is fine — underwriting just needs statements showing the trail from start to finish. 

 Cash deposits are harder to document because the source can’t be verified the same way as electronic funds. 

 Underwriters rely heavily on bank statements to confirm ownership, balances, and transaction activity. 

 A: Cash to close is the total amount you’re expected to bring to closing, including down payment, closing costs, prepaid items (like taxes/insurance), and any required deposits shown on your Loan Estimate. 

 A: A large deposit is any deposit that looks unusual compared to your normal income pattern. If it isn’t clearly payroll or a consistent, expected source, underwriting may ask where it came from and for documentation to support it. 

 A: Often, yes. Gift funds typically require a signed gift letter and documentation showing the transfer from the donor to you (and sometimes evidence the donor had the ability to give the funds). 

A: Seasoned funds are money that has been in your account long enough that it doesn’t look like a last-minute deposit. Seasoned funds are usually easier to document because the source is less likely to be questioned.

 A: Yes — transfers are common. The key is keeping a clear paper trail (statements showing the money leaving one account and arriving in the other) so underwriting can follow the funds. 

 A: Cash deposits are difficult because underwriting can’t easily verify where the cash came from. Even if it’s your money, lenders typically want a clear, documentable source for funds used to qualify or close.