Purchase · 5 min read
What if my bank statements have large deposits I cannot explain?
October 19, 2026 · Written by Bill Egan, NMLS 7342
Short answer
Large deposits on your bank statements need a paper trail before they can count toward your cash to close. The underwriter wants to see where the money came from so it is not a new loan or an unallowed gift. We ask for the source documents early so the file does not stall after you have a contract. Bring the paperwork for any big deposit from the last two months when you apply.
01
Why this comes up
You are ready to buy, but a recent transfer or deposit on your statement is bigger than your normal pay and you do not have an obvious paper trail for it.
02
Where this goes wrong
The underwriter conditions the file for the source of the deposit right before closing. Without the proof, that money cannot be used and the cash to close number changes.
03
What we do about it
We review the statements with you up front and tell you exactly which deposits need a source. Then we collect the gift letter, sale receipt, or transfer proof while there is still time.
04
How to get ready
Look at the last two months of statements. For any deposit over a few hundred dollars that is not payroll, gather the paper that shows where it came from before you apply.